IT Exports Slightly Down at $2. 6 billion in FY23

The exports of the highly potential IT sector unexpectedly declined slightly to $2.6 billion during the financial year 2022-23.

According to data released by the State Bank of Pakistan (SBP), the export receipts from the IT sector decreased to $2.605 billion in the financial year 2022-23 as compared to export revenues of $2.619 billion received in the previous financial year 2021-22, showing a slight decline of 0.5% or %14 million on a year-on-year basis.

Though the export remittances mildly declined in value, however, it substantially lower than the projection made over the period of the last year.

Previous estimates suggested that IT exports should have touched $4 billion mark this year easily this year, but various factors including the lack of government sustainable support in terms of policies and regulations hampered the growth of exports in its true potential.

Noman Said, an IT businessman, said that the inconsistent policies and absence of timely implementation at the government’s end apparently hurt the confidence of the exporters, resulting in the growth in IT exports being negative.

He said that IT exporters need sustainable policies particularly maintaining foreign exchange accounts to ensure their offshore operations, but this facility was not provided in Pakistan on time, unfortunately.

Furthermore, the competitiveness of Pakistani IT firms in the global market plays a crucial role. If other countries or regions were able to offer more competitive pricing, higher quality services, or better technological advancements, it could have led to a decline in Pakistani IT exports, Noman Said, CEO SI Global Solutions added.

Insufficient infrastructure, limited access to advanced technology, and inadequate internet connectivity hinders the growth and competitiveness of IT exports. If Pakistani IT firms faced challenges in these areas, it might have affected their ability to compete effectively.

Favorable policies and regulations can stimulate growth and attract investment in the IT sector. Conversely, if there were unfavorable policies or regulatory constraints in Pakistan, such as high taxes, bureaucratic hurdles, or limited government support, it could have hampered the growth of IT exports, he concluded.

See Also: TechLeads Portal- A Step to Connect Pakistan’s IT industry and Pakistani Diaspora