Pakistan’s inaugural IT export strategy report, crafted by the Pakistan Software Export Board (PSEB) in collaboration with PricewaterhouseCoopers (PwC) and international partners, including the University of Oxford, unveils a promising trajectory for the country’s IT and IT-enabled services (ITeS) sector.
The report projects the potential for Pakistan to escalate its IT/ITeS export revenues to $15 billion annually within the next 5 to 6 years, transforming the nation into a global IT hub.
Key findings indicate that Pakistan currently boasts 1 million freelancers, a workforce of 316,000 in the IT sector, 226,000 enrolled in IT disciplines at higher education institutions, and 12,000 IT businesses. This robust foundation positions Pakistan to emerge as an IT hub within the specified timeframe.
To attain this ambitious export target, the strategy focuses on five priority IT/ITeS market segments and 12 sub-segments characterized by substantial global market growth, significant market size, and a shortage of established players. These segments include Software Development, ITES, ITSS, E-Services, and Smart Tech, encompassing sub-segments such as AI, Blockchain, Cloud computing, E-Healthcare, Cybersecurity, and more.
Currently, Pakistan’s IT exports are primarily directed to the USA, UAE, UK, Singapore, Canada, and Norway. In the fiscal year 2020-21, IT exports to the USA totaled $1,066 million, with additional contributions from other countries.
The report emphasizes the rapid growth of the IT sector, ranking first among 12 service sectors in 2021/22, with Software Development and IT Services accounting for 75 percent of total industry revenues.
For sustained growth, macro-interventions are recommended, encompassing favorable conditions such as the availability of credit based on customer contracts, subsidized credit for establishing business process outsourcing (BPOs), and a private equity fund setup. Other proposed interventions include unrestricted mobility of foreign currency earned by freelancers and IT enterprises, tax incentives, improvements in the legal and regulatory framework, and increased equity and investment from both domestic and international sources.
To nurture this growth, the report advises strategic initiatives such as skill development for one million individuals in technical and managerial roles, enhancements to supporting infrastructure like high-speed internet connectivity, cloud services, and technology parks, and overall upgrades to the legal and regulatory landscape.
