Game Changer: PSEB Enhances IT Export Framework in Pakistan

The Pakistan Software Export Board (PSEB) has created a thorough framework for enhancing IT and ITeS exports that lays out a series of initiatives and programs. These programs and frameworks will be implemented on the supply side as well as the demand side in order for the industry to receive $15 billion in annual export remittances in the next five years.

The PSEB framework would reduce the cost of doing business with the goal of making Pakistan a desirable site for IT outsourcing, attracting new investors, customers, and partners, and retaining existing ones.

In order to meet the increasing demand for skilled IT & ITeS professionals and reach the ambitious goal of $15 billion, efforts will be focused on human resource development and capacity building. This initiative aims to enhance the skills and capabilities of individuals in the field, ensuring a well-equipped workforce to cater to the industry’s needs.

By prioritizing the development of skilled HR, the sector can effectively meet the growing demands and achieve its economic targets. The prioritization of infrastructure development would aim to ensure the provision of adequate IT-enabled workspaces, along with a supportive ecosystem, in order to enhance IT exports. This would involve the building of various facilities such as IT Parks, Software Technology Parks, Centers of Excellence, and Knowledge Parks.

The implementation of foreign marketing strategies, including branding, promotion, and business development initiatives, plays a crucial role in stimulating worldwide demand and enhancing the export of IT & ITeS services. These efforts also aim to position Pakistan as the preferred global outsourcing location.

The government of Pakistan should take the initiative to strengthen ties with key allies and neighbors in order to boost the country’s IT exports. These state-led initiatives will lessen reliance on the small number of countries that generate the vast majority of export earnings from IT and ITeS.

The country’s potential for making money off of its information technology exports is being held back by a number of obstacles that have been highlighted by the Ministry of Information Technology and Telecommunications. These obstacles include inconsistencies in regulations, problems with taxation, and roadblocks in the banking system. One such example is the frequent changes in tax policy that are imposed on the proceeds of IT and ITeS exports.

According to official records, there has been a remarkable increase of 178 percent in IT & ITeS exports over the course of the last five years. This growth has been achieved at a compound annual growth rate (CAGR) of 30 percent, which is the highest among all local service industries. It is worth noting that this growth rate surpasses even that of the textile sector, which stands at 148 percent.

However, the expansion of IT and ITeS exports is being hampered by a number of restrictions and obstacles. The lack of coherence among various policies has contributed to a loss of confidence on the part of local and foreign investors, customers, and partners, not to mention organizations of the trade and government.

Check Out: PSEB Steps Up to Establish Knowledge Parks in Each Province.