While there is a slowdown in remittance growth rate, Pakistan’s actual exports might be increasing
LAHORE: Pakistan’s offical IT exports numbers are showing a trend of slowdown due to a mix of policy issues at home, the waning of pandemic-induced digitisation and a global recession that has brought about a slowdown in the digital spend at companies that outsource IT-related work to Pakistan.
To make the situation worse, IT companies are believed to be disinclined towards bringing money into Pakistan and blurring the line between the actual exports from the country and what is brought into Pakistan against those exports.
According to the numbers published by the State Bank of Pakistan (SBP), growth in Pakistan’s IT increased by 5% on a yearly basis to $233 million. While there is growth, this growth has come down 10% from a peak of $260 million recorded in March 2022.
According to Topline Securities, broadly, there is a slowdown in IT exports with growth rate averaging 6% in the last six months of 2022 (June to November), compared to average 17% year on year growth in the six months before June (December to May). The slowdown is also likely going to lead to the government missing its $3 billion target of IT exports this year.
For the first five months of the ongoing fiscal year (July to November), IT exports totalled $1.09 billion, a puny growth of 3% year on year. The beginning of the slowdown coincides with the departure of Imran Khan administration earlier this year,...
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