Reaching a new milestone and setting bars up, IT exports through banking channels have crossed $1 billion mark in Pakistan, for the very first time.
As per the data shared by SBP (State Bank of Pakistan), the exports of IT and IT related services have significantly increased, touching the $1.067 billion for the financial year 2017-18. The figures have shown a double-digit increase and a growth of 13% as compared to the financial year 2016-17 when the digits stood at $939 million.
Not just the progress is absolutely impressive, this is also the second consecutive time Pakistan’s IT industry attained an all-time high record. The country also recorded the highest value for the year 2016-17.
However, the actual value of the IT exports is considered three times more than the remittances by SBP that concludes that the overall figures crossed the $3 billion mark in the outgoing financial year. The reason for the discrepancies in the number of IT sector’s exports is that the export is reflected in a number of affiliated sectors, such as the automobile, financial and health.
Another reason for misreporting in the accurate figures of export numbers is that a good amount earned by freelancers is landed under overseas remittances. There are many companies that are operating through Dubai and delivering products in Pakistan. The earnings hence are actually sent under ‘overseas remittances’ which leads to fluctuations in the exact numbers of the exports.
The exports grew significantly due to the increase in Pakistani products across the world. Due to the improved security image, many foreign companies are investing interest in Pakistan. The industry largely depends on outsourcing, hence the revenue comes from software products and services.
Pakistan’s exports are mainly concentrated in the US market, with 60%. Then followed by European countries (38 per cent) and then the Middle Eastern countries.
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