IT exports rise by 10% MoM

Despite facing numerous challenges in the IT sector, Pakistan’s Information Technology (IT) exports for August 2023 have amounted to $235 million, marking a significant 10% increase on a month-on-month (MoM) basis. This boost was primarily due to a higher number of working days compared to July 2023. The Federal Minister for Information Technology & Telecommunication, Dr Umar Saif, recently pledged to elevate ICT exports from $2.62 billion to a staggering $10-20 billion. His predecessor, Syed Aminul Haque, had also aimed to push Pakistan’s IT exports to $15 billion from the existing $2.6 billion over the next few years. However, despite these ambitious claims, IT exports have not witnessed any major growth in recent years, owing to various challenges and uncertainties in the economic landscape. Foreign exchange constraints have led to the closure of several factories across various industries, including newly established smartphone assembly plants. Another pressing issue is the government’s practice of charging fees in dollars for allocating spectrum to IT companies, which has raised serious concerns in the current economic situation. Additionally, high taxes continue to burden IT companies, hindering their growth potential. Experts in the IT sector stress the need for significant investment, which can only be achieved through sustainable policies and the resolution of existing issues, particularly high taxation.