- Country’s IT sector thrives, generating billions in exports and attracting international investment for future growth
According to the Ministry of Finance, the 2023 Global Services Location Index by Kearney ranks Pakistan as the world’s most financially attractive IT outsourcing destination. Additionally, the International Labour Organisation (ILO) has identified Pakistan as the second most significant supplier of digital labour in software development and technology services. The third most significant digital labour supplier includes clerical and data entry services, creative and multimedia services, professional services, sales and marketing support services, software development and technology services, and writing and translation services. In addition, there are 45 e-Rozgaar centers located in 36 districts across Pakistan.
This new initiative aims to empower youth through digital skills training and employment opportunities. These centers act as hubs where individuals can receive training in various digital fields, such as freelancing, digital marketing, content writing, and graphic design. The goal is to establish 10,000 E-Rozgar centers in Pakistan, offering affordable workspaces for freelancers and startups, ultimately benefiting 1.0 million freelancers. It is recorded that the government of Pakistan will also support the establishment of e-Rozgar centers by offering interest-free loans of up to Rs 10 million.
Presently the IT industry in Pakistan generates an annual export of around US$ 2.6 billion. However, to attain the ambitious target of yearly exports of US$ 15 billion in the next five years, adding at least 200,000 proficient and specialized IT professionals is necessary.
Pakistan’s ICT industry caters to the world’s largest entities among its regular clients. Various international companies, counting Global enterprises like Bentley, Ciklum, IBM, Mentor Graphics, S&P Global, Symantec, Teradata, and VMware organized global consulting services centers, research & development facilities, and Business Process Outsourcing (BPO) support services centers in Pakistan thus generating high paying career opportunities for the talented youth, contributing to the development of the soft image of Pakistan, and attracting FDI. Major tech hubs in Pakistan’s IT & IT enabled services (ITeS) industry are Karachi, Lahore, and Islamabad/Rawalpindi. Pakistan’s ICT industry has 600,000+ English speaking IT & BPO professionals with expertise in current and emerging IT products and technologies.
Pakistan Startup Fund (PSF)
PSF is a government-backed initiative to support and promote the growth of startups in Pakistan by encouraging investments in our country by top-notch global and local venture capital (VC) funds. VC firms often face high risks in nascent startup ecosystems.
The Government of Pakistan recognised the necessity of intervention to address these challenges and foster a robust startup culture. It launched a program aimed at mitigating the risks faced by VCs through the Pakistan Startup Fund. The fund will offer 10 percent — 30 percent of the total investment made by a VC in a particular funding round as equity-free capital or a grant as the last cheque. The government’s contribution of Rs 2 billion is poised to catalyze Rs 50 billion in the Pakistani startup ecosystem.
Pakistan Software Export Board
The Development of Pakistan’s ICT sector can be gauged from the fact that 20,000+ IT&ITeS companies registered with the Securities and Exchange Commission of Pakistan (SECP) comprising domestic and export-oriented enterprises. ICT export remittances have surged from US$ 339 million (17.44 percent) to US$ 2.283 billion during FY2024 (July-March) as against to US$ 1.944 billion during the corresponding period last year. In March 2024, ICT services export remittances surged to US$ 306 million, an increase of 36 percent compared to US$ 225 million in March 2023. Compared to the previous month of February 2024, ICT services export remittances increased by US$ 49 million in March 2024.
The trade surplus of US$ 1.996 billion, the highest in all Services (87.43 percent of total ICT export remittances), has been realized by the IT &ITeS Industry during FY2024 (July-March), a rise of 15.84 percent as against to a trade surplus of US$ 1.723 billion during the corresponding period last year. At the same time, the Services sector has recorded a trade deficit of US$ 1.655 billion during FY2024 (July-March). ICT sector exports of US$ 2.283 billion are the highest among all services (39.31 percent of total export of services), with ‘Other Business Services’ trailing at US$ 1.205 billion from FY2024 (July to March). Pakistan-based freelancers contributed foreign exchange earnings to Pakistan’s economy by remittances of US$ 350.15 million during FY2024 (July-March).
Pakistan’s ICT industry exports to 170 countries and territories. The top 15 export destinations for Pakistan’s ICT industry are the USA, UK, UAE, Ireland, Singapore, Canada, China, Saudi Arabia, Germany, Norway, Sweden, Australia, Switzerland, Japan, and Malaysia.
IGNITE–National Technology Fund (NTF)
IGNITE-NTF is focused on funding and promoting technology innovation and entrepreneurship in Pakistan.
| Pakistan: Telecom Industry Financials | |||||
|---|---|---|---|---|---|
| 2019-20 | 2020-21 | 2021-22 | 2022-23 (P) | 2023-24 Jul-Mar (E) |
|
| Telecom Revenues (Rs Billion) | 595 | 647 | 725 | 850 | 735 |
| Telecom Contribution (Rs Billion) | 286 | 219 | 323 | 340 | 213 |
| Telecom Investment (US$ Million) | 1,140 | 1,214 | 1,666 | 762 | 617 |