The Pakistan Information Technology (IT) industry has experienced $1.5 billion in exports for the first time. In March, the industry received the highest export remittances of $213 million.
According to data released by the State Bank of Pakistan (SBP, IT and IT-enabled services recorded a huge increase of $1.512 billion during the first nine months of the current fiscal year (FY) 2020-21.
The industry observed an increase of $459 million, or 43 percent in comparison to the previous period in which the IT exports stood at $1.512 billion.
The handsome growth in IT exports was driven through software consultancy, Business Process Outsourcing (BPO), e-commerce, telecommunication services, etc.
Moreover, the Pakistani IT industry capitalized on the worst-hit market of India that is also a leading IT service exporter, but because of the COVID-19, the global industry has consulted experts in Pakistan.
Pakistani software houses are getting a great influx of orders from countries like the US, UK, EU, and the East Easter or Gulf countries because they have a high demand for IT services.
The country could further increase the exports from $2 billion to $3-3.5 billion in the next financial year if the stakeholders including software houses, the government, and concerned authorities develop an aggressive plan while minimising impediments in the IT sector.
Furthermore, as per the old policies of the government, the IT sector was exempted from the tax network but the government has decided to reverse the decision.
Companies are concerned about the immoral practices of government departments, and the recent raids on the IT companies from the intelligence agency also created a fearful working environment for the other software houses, which are considering setting up their offshore offices in different countries.
On the other side, revenue experts said the IT industry with handsome balance sheets should contribute to support the ailing economy with taxes at a time when the industry is witnessing a peak time.
