Pakistan’s IT Exporters Eye $3.5 Billion Milestone in 2024
In a promising turn of events, major deals with Saudi firms have left Pakistan’s information technology exporters hopeful of reaching the $3.5 billion trade milestone by 2024.
The South Asian nation saw a significant increase in monthly IT exports, totaling $257 million in February. This marked a 32 percent rise compared to the same month last year.
Central bank data released this week revealed that the monthly IT exports in February exceeded the previous 12-month average of $233 million.
Supportive Policies and Strategic Partnerships Drive Growth
Pakistani exporters attribute this surge to supportive policies that incentivized local companies to repatriate their earnings and the establishment of the Special Investment Facilitation Council. This council, a civil-military hybrid forum, aims to boost foreign investment in the country.
Furthermore, the enhanced trade relations with Saudi Arabia have played a significant role in this growth. Dozens of Pakistani IT firms showcased their innovative ideas and products at the LEAP tech exhibition in Riyadh, resulting in lucrative deals.
Expanding Opportunities and Projections
Zohaib Khan, chairman of the Pakistan Software Houses Association (P@SHA), reported that projects worth millions of dollars have been secured, with a pipeline for even larger projects in the works.
LEAP 2023 generated $9 billion in IT business, and Pakistani companies established leads valued at over $100 million through business-to-business matchmaking.
Khan estimated that IT exports to Saudi Arabia have increased by up to $100 million in the last two years alone.
Government Initiatives and Future Outlook
The State Bank of Pakistan’s decision to increase the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts has encouraged IT companies to repatriate their foreign income. This, coupled with a stable currency, has boosted confidence in depositing earnings locally.
Finance Minister Muhammad Aurangzeb expressed optimism about Pakistan’s IT exports potentially reaching $3.5 billion this year. The country’s market for computer software has been steadily growing, with the US being its largest market for IT products.
With the government’s focus on harnessing the potential of IT exports and ongoing efforts to facilitate cross-border payments, Pakistan’s IT sector is poised for further growth and success in the coming years.