Official data released by the government indicates that the remittances soared to $2.283 billion, up from $1.945 billion recorded in the corresponding period of previous fiscal year.
In a significant boost to Pakistan’s export sector, remittances from Information Technology (IT) and IT-enabled Services (ITeS) have witnessed a remarkable surge, registering a substantial increase of 17.37% during the initial eight months (July-March) of the fiscal year 2023-24.
Official data released by the government indicates that these remittances soared to $2.283 billion, up from $1.945 billion recorded in the corresponding period of the previous fiscal year.
The data further reveals that March 2024 witnessed a notable milestone, with ITeS exports hitting an all-time high of $306 million, marking a month-on-month (MoM) increase of approximately four percent. This figure eclipses the previous monthly export record of $303 million, which was achieved in December 2023. Moreover, on a year-on-year (YoY) basis, the sector experienced a staggering 36% surge compared to March 2023, when remittances stood at $225 million.
While the IT and ITeS sectors celebrate this remarkable growth trajectory, the broader Information and Communication Technology (ICT) export remittances, encompassing telecommunication, computer, and information services, witnessed a slight decline. The ICT export remittances totaled $2.597 billion in FY2023-24, reflecting a marginal negative growth rate of around one percent compared to the preceding fiscal year’s figure of $2.619 billion.
The Ministry of Information Technology and Telecommunications has identified several impediments that hinder the realization of Pakistan’s full export potential in the information technology sector, estimated to be around $15 billion. Among the key challenges cited are the inconsistency in policies, taxation issues, and banking hurdles. Addressing these constraints is imperative to unleash the country’s IT export prowess and further bolster its position in the global digital economy.
The surge in IT and ITeS export remittances underscores the growing significance of Pakistan’s IT sector on the global stage and highlights the sector’s potential to contribute significantly to the country’s economic growth and development.
With concerted efforts to address existing challenges and foster a conducive environment for IT exports, Pakistan is poised to capitalize on this momentum and emerge as a key player in the international IT landscape.