IT Exports In Fy23 Witness A Decline Despite Government’s Lofty Assertions

During the fiscal year 2022-23, Pakistan experienced a slight decline of approximately 0.6 percent in the remittances from its IT and IT-enabled Services (ITeS) exports. The total remittances stood at $2.605 billion, compared to $2.619 billion in the previous fiscal year 2021-22. 

The data from official sources reveal that on a year-on-year basis, the sector’s export remittances remained unchanged at $236 million in June 2023, the same as in June 2022. Similarly, on a month-on-month basis, the sector’s export remittances showed stability with $236 million in May 2023.

In the fiscal year 2021-22, the IT and ITeS export remittances, which include services related to telecommunications, computers, and information, reached an all-time high of $2.619 billion. This represented a growth rate of 47.43 percent compared to $2.108 billion in the fiscal year 2020-21.

The Ministry of Information Technology and Telecommunication had set a target of achieving $5 billion in IT exports by June 2023. However, the ministry had also cautioned the government that without implementing the agreed incentives, maintaining policy consistency, and resolving issues related to taxes and banks, the export remittances from the telecom sector may be adversely affected, thereby compromising the country’s digital vision.