Pakistan’s IT and IT-enabled Services (ITeS) export remittances declined by over 0.5 percent during the first nine months of the current fiscal year 2022-23 (FY23) and stood at $1.941 billion compared to $1.950 billion during the same period of last fiscal year.
According to the official data, on a year-on-year (YoY) basis, the sector’s exports remittances decreased by around 24 percent and remained at $223 million in March 2023 compared to $260 million in March 2022. On a month-on-month basis, the sector’s export remittances increased by 14 percent compared to $195 million in February 2023.
The IT and IT-enabled Services (ITeS) export remittances, including telecommunication, computer, and information services, reached an all-time high of $2.618 billion, a growth rate of 47.43 percent in FY22 compared to $2.108 billion in FY21.
The Ministry of Information Technology and Telecommunication had envisaged that the IT exports target of $5 billion would be achieved by June 2023.
However, it had also warned the government that on account of the non-implementation of agreed incentives, lack of consistency in policies, as well as, without resolving the tax and banks-related issues, the telecom sector exports remittances may suffer besides compromising its digital vision.
The National Assembly Standing Committee on Information Technology and Telecommunication was informed recently that Pakistan’s IT exports are over $5 billion but exports of just $2.5 billion are documented.
Officials of the Ministry of Information Technology and Telecommunication told the parliamentary panel that unnecessary restrictions are discouraging exporters from using formal banking channels and encouraging retention of export earnings abroad.
The government has also decided to launch a Technology Marketing Export Program to address international public relations, branding, and marketing for accelerated growth of IT and ITeS export.
A comprehensive feasibility study of top export destinations will be prepared in 6 months to design the technology marketing export program framework.