Pakistan’s IT Exports Surge Amid Efforts to Reduce Trade Deficit
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Pakistan,like many developing countries, strives to reduce imports and increase exports to improve economic indicators and foster national development. The country has long grappled with a significant trade deficit, with successive governments prioritizing the need to curb imports and boost exports. To achieve this, heavy duties and taxes are imposed on imports, while various incentives are offered to enhance exports.
In recent years, Pakistan’s IT industry has seen remarkable growth, which has directly impacted the country’s export figures. Over the past five years, IT exports have surged from $1.44 billion annually to over $3.22 billion. The overall export increase for the last fiscal year stood at 10.5%, with IT exports alone growing by over 24% during FY 2023-2024.
According to records from the State Bank of Pakistan, IT exports were valued at $1.44 billion in fiscal year 2019-20. This number rose to $2.10 billion in 2020-21 and $2.61 billion in 2021-22. Despite a slight decline in 2022-23, with exports amounting to $2.59 billion, the following fiscal year saw a significant rebound, reaching $3.22 billion.
In the first six months of the current fiscal year, the IT sector has already exported services worth $1.86 billion, a 28% increase compared to the previous year. In December 2023 alone, $340 million worth of services were exported, marking a 12.2% increase from November 2023 and a 14.8% increase compared to December 2022.
Experts attribute this surge in IT exports to the State Bank of Pakistan’s favorable policies and anticipate that this growth trend will continue into FY 2025. Projections suggest that IT exports in the current fiscal year could rise by 10 to 15% compared to last year, reaching between $3.5 billion and $3.75 billion.