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Thursday, July 7, 2022
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Despite high potential, IT sector’s growth not up to expectations

IT exports expanded at 29.26% rate compared with last year, State Bank

Despite the potential for tremendous growth in it, Information Technology (IT) sector in Pakistan could not meet expected growth.

If followed up and given the necessary support by the government, this department alone can become the backbone of country’s economy.

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Data from the State Bank of Pakistan shows that during the period of July to March 2022 IT exports in the country had expanded with a growth rate of 29.26% to $1.948 billion as compared with the growth in the same period of last financial year.

Although Pakistan is in dire need of more deposits in the country’s wealth; and IT sector can grow to a level that can contribute more aggressively but its growth couldn’t push beyond two-digits. According to SBP data, IT sector contributed 38% or $2.2 billion in first 10 months of the recently ended fiscal year.

Head of Research at Arif Habib Limited (AHL) Tahir Abbas speaking to the media told that the expansion of IT sector would result in topline growth that would be coupled with US dollar appreciation.

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Earlier, the government has been keen in boosting the sector by developing an IT park with numerous benefits including an increase in the country’s tax amounts significantly. Growth-driven financial incentives were announced by the government. Economic Affairs Division had signed an agreement amounting to $158 million with EXIM Bank of Korea with total project cost of $186 million.

Software Technology Parks have also been set up across the country but the primary focus has been on secondary as well as tertiary cities so that the network of IT sector could be widespread across the whole country to enable more people apart from major cities like Karachi, Lahore and Islamabad.

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