July Witnesses 7% Year-on-Year Growth in IT Exports

In July 2023, Pakistan observed a rise of approximately 7% in its export remittances from the IT and IT-enabled Services (ITeS) sector, amounting to $214 million compared to the previous year’s $199 million.

However, during the first month of the current fiscal year, these export remittances experienced a decline of 5% on a month-on-month basis, standing at $214 million as opposed to June 2023’s $224 million. This information is based on official data released by the State Bank of Pakistan. The initial fiscal year 2022-23 estimates for sector export remittances were $2.605 billion, but the State Bank of Pakistan has revised this down to $2.593 billion.

The ITeS export remittances fell short of the fiscal year 2022-23 target of $3 billion by about 14%. This shortfall can be attributed to issues such as unimplemented incentives, inconsistent policies, and unresolved tax and banking matters.

Throughout the fiscal year 2022-23, sector export remittances slightly decreased by approximately 1%, totaling $2.593 billion in contrast to the previous fiscal year’s $2.619 billion.

The combined export remittances from IT and ITeS, encompassing telecommunications, computing, and information services, experienced remarkable growth, reaching an unprecedented high of $2.619 billion in the fiscal year 2022, marking a growth rate of 47.43% compared to the $2.108 billion recorded in the fiscal year 2021.

The Ministry of Information Technology and Telecommunication had aimed for IT exports to achieve a $5 billion target by June 2023. However, they cautioned that without the implementation of promised incentives and consistent policies, along with resolution of tax and banking issues, the telecom sector’s export remittances could decline, impacting its digital vision.