Impressive growth in Pakistan’s IT and ITeS Exports

During the initial half of the fiscal year 2023-24 (July-December), the export remittances from the Information Technology (IT) and IT-enabled Services (ITeS) sector, encompassing computer services and call center services, witnessed a notable surge of approximately nine percent. The total reached $1.455 billion, marking an increase from $1.335 billion recorded during the corresponding period in the preceding fiscal year.

Official data highlights a significant month-on-month (MoM) increase of around 17 percent in December 2023, with ITeS exports’ remittances reaching $303 million, up from $259 million in December 2022. On a year-on-year (YoY) basis, the sector experienced a robust 23 percent growth compared to December 2022’s figure of $247 million.

Broadening the scope to include Information and Communication Technology (ICT) export remittances—encompassing telecommunication, computer, and information services—the sector recorded $2.597 billion during the fiscal year 2022-23. While this signifies a marginal one percent negative growth compared to the $2.619 billion achieved in the fiscal year 2021-22, it underscores the sector’s resilient performance.

Caretaker Federal Minister for Information Technology and Telecommunications, Dr. Umar Saif, attributed this positive trajectory to the collaborative efforts of the Pakistan Software Export Board and the Ministry of IT and Telecommunication. Their concerted actions, coupled with close coordination with the Special Investment Facilitation Council (SIFC), have created a conducive environment for doing business in the IT industry.

The IT and ITeS industry achieved a notable trade surplus of $1.251 billion, representing 85.98 percent of the total ICT export remittances during July to December 2023 in fiscal year 2023-24. This marks a 7.11 percent increase compared to the trade surplus of $1.168 billion recorded during the same period the previous year. In contrast, the Services sector overall recorded a trade deficit of $1.43 billion during July-December 2023 of fiscal year 2023-24.