Pakistan’s IT sector made significant progress in the preceding tax year, with impressive penetration in exporting countries, resulting in a massive increase in export values, which crossed the $2 billion mark for the first time.
According to the State Bank of Pakistan, exports of information technology and information technology-enabled services increased by 47 percent year on year to $2.1 billion in fiscal year202-21, up from $1.44 billion in the previous financial year.
According to industry professionals, the strong performance of local IT firms managed to draw long-term export orders from the United States, the United Kingdom, the European Union, and the Middle East, as demand for automation and eCommerce surged globally as a result of the Covid-19 pandemic prevention.
Software consultancy, e-commerce and automation, BPO, mobile, and software development are major IT exports.
Exporting countries chose the Pakistani IT sector over other countries such as India, Bangladesh, and the Philippines due to smart lockdown strategies in Pakistan, which resulted in a long-term shift of orders to local firms.
Experts told Propakistani that exports of IT and IT-enabled services could remain buoyant as long as the government honours its long-term policy commitments.Despite the fact that incentives have been removed from the IT sector, the local IT industry is currently expanding with the employment of skilled workers.
The expulsion of the IT sector’s tax exemption a few months ago has shaken the confidence of investors and exporters, potentially affecting the momentum of IT exports in the current financial year.
IT exporters urged the government to keep its promise to provide rewards and quality of goods and services to the IT sector, which will result in dollar inflows and the creation of skilled jobs in the country.