Pakistan’s IT sector records 11.66% growth in November exports

WEB DESK: Government policy measures in Pakistan are reaping rewards for the information technology (IT) sector, witnessing an 11.66 per cent year-over-year (YoY) surge in service exports, totaling $259 million in November.

This growth is a notable increase from the $233 million recorded in the same period last year (SPLY).

On a month-to-month basis, there was an 8.82 per cent sequential increase in exports during November, surpassing the $238 million mark recorded in October 2023.

Dr Umar Saif, the Caretaker IT and Telecom Minister, expressed contentment with the latest trade figures released by the State Bank of Pakistan (SBP) via his social media channels.

Data from the Central Bank unveiled a net surplus of $226 million in the trade of IT services, showcasing a positive trend compared to the $204 million surplus in October.

Notably, the import of IT services decreased by 2.94 per cent month-over-month (MoM) to $33 million in November, signalling reduced reliance on imports and increased domestic industry development.

In the cumulative figures for the first five months of Fiscal Year 2024 (5MFY24), earnings from telecommunications, computers, and information services reached $1.152 billion.

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This represents a substantial YoY growth of 5.88 per cent, up from $1.09 billion in the same period in the previous fiscal year.

This positive trajectory is attributed to strategic initiatives, including the establishment of the Special Investment Facilitation Council (SIFC) and productive visits to Qatar, which explore untapped potential to boost Pakistan’s IT exports.

The government’s introduction of the inaugural IT and ITeS Export Strategy aims to propel IT exports to $10 billion within the next three years, marking a pivotal step forward.

In a significant development, negotiations with Starlink for satellite internet in Pakistan are in the final stages, signalling a new phase of development for the industry.

The recent approval of Pakistan’s first-ever national space policy by the Federal Cabinet is poised to empower private-sector companies to offer affordable internet services in the country, further fostering growth and innovation in the IT sector.