The first-ever IT export strategy report from Pakistan unveils ambitious growth projections, suggesting that the country could elevate its IT/ITeS export revenues to a staggering $15 billion per annum within the next 5 to 6 years.
Collaboratively prepared by Pakistan Software Export Board (PSEB) with PricewaterhouseCoopers (PwC) and international partners, including faculty from the University of Oxford, the report envisions Pakistan transforming into a global IT hub with export revenues ranging from $12 billion to $18 billion annually.
The report highlights key statistics, such as Pakistan boasting 1 million freelancers, a workforce of 316,000 in IT, 226,000 enrolled in IT disciplines in higher education institutions, and 12,000 IT businesses. This collective potential positions Pakistan to emerge as a significant IT hub in the coming years.
To achieve this ambitious export target, the strategy focuses on five priority IT/ITeS market segments with 12 sub-segments, emphasizing high global market growth, substantial market size, and a scarcity of established players.
Currently, Pakistan’s major IT export destinations include the USA, UAE, UK, Singapore, Canada, and Norway. In the year 2020-21, IT exports to the USA reached $1,066 million, with other notable figures including $126 million to UAE, $104 million to the UK, $51 million to Singapore, $39 million to Canada, and $36 million to Norway.
The report underscores the rapid growth of Pakistan’s IT sector, ranking 1st among 12 service sectors in 2021/22. Software Development and IT Services segments contribute 75 percent of the total IT Industry revenues.
Identifying five priority IT market segments—Software Development, ITES, ITSS, E-Services, and Smart Tech—the report also pinpoints 15 priority subsegments, encompassing AI, Blockchain, ERP/CRM Integrations, Cloud computing, LPO, AR, VR & MR, E-Healthcare, Digital Twin, Cybersecurity BPO, E-learning, and E-Education.
However, the report emphasizes the need for favorable macro-conditions, proposing interventions such as credit availability based on customers’ contracts/receivables, subsidized credit for setting BPOs, and the establishment of a private equity fund. Other suggested interventions include free mobility of foreign currency earned by freelancers and IT enterprises, tax legislation harmonization, increased equity and investment, and improvements in the legal, regulatory, and policy regime.
Strategic inputs for IT export growth involve skills development for up to 1 million people in technical and managerial training, along with enhancements to supporting infrastructure such as high-speed internet connectivity, cloud services, and technology parks.
The report sets a comprehensive roadmap for Pakistan to solidify its position in the global IT landscape and harness its untapped potential.
