KARACHI:
Despite encouraging signs of export potential in the information technology (IT) sector and the government’s acknowledgment, the sector has fallen short of its export capacity.
According to the State Bank of Pakistan (SBP) data, IT exports during July-March FY22 surged to $1.948 billion at a growth rate of 29.26% in comparison to $1.5 billion in the same period of last year. This includes telecommunication, computer and information services.
Though the IT sector has the potential to grow in three digits, Pakistan, which is in dire need of foreign exchange, could not push the sector’s growth beyond two digits despite claims of successive governments.
During the first 10 months of FY22, the IT sector made exports of $2.2 billion, contributing 38% to the overall services’ export and marking a 29% year-on-year jump, Arif Habib Limited (AHL) Head of Research Tahir Abbas told The Express Tribune.
The government had been focused on increasing IT exports whereas the idea of establishing an IT park with significant tax benefits was also being explored, he added.
“We believe that continued expansion in the industry will aid the topline growth, which will further be supported by the US dollar appreciation as most companies have a dollar-denominated revenue stream,” said the analyst.
Trade surplus for industry
According to the Economic Survey, Pakistan’s IT Industry is the largest net services exporter with exports to 169 countries as compared to the rest of the services...
Read Full Story: https://tribune.com.pk/story/2360865/it-exports-surge-to-19-billion-have-potential-to-grow-further
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