Pakistan’s IT export industry is experiencing growth in various sub-sectors, as per the latest performance report of the Pakistan Software Export Board (PSEB). The export of computer services grew by 3.15% from $1.03 billion to $1.07 billion, with software consultancy services and hardware consultancy services witnessing a growth of 6.34% and 209.95%, respectively. The export and import of computer software-related services surged by 11.29%, while exports of repair and maintenance services increased to $1.53 million. On the other hand, the export of other computer services decreased by 6.28%.
Pakistan’s IT export industry has seen substantial growth in software-related services, with an increase of 34.87% this fiscal year. The country earned $563.071 million from software services, up from $417.485 million in the previous year. The Ministry of IT and Telecommunication is taking steps to ensure sustainable growth of Pakistan’s IT industry, and there are generous incentives from the government to enhance the industry’s capacity and capability.
Incentives to the industry include zero income tax on IT and ITeS exports until June 2025, tax breaks for PSEB-registered IT start-ups for three years, up to 100% foreign ownership of IT and ITeS companies, up to 100% repatriation of profits for foreign IT and ITeS investors, and tax holidays for venture capital funds until 2024, among others.
The Pakistan Bureau of Statistics (PBS) published detailed findings about the IT industry, including the amount of money each sub-sector made in the IT export industry. The report showed that Pakistan earned $1.33 billion by providing different IT services to various countries during the first six months of the current fiscal year, representing a growth of 2.41% compared to the same period last year.
Among the computer software service industry, exports of repair and maintenance services decreased, while other computer software services saw an increase of 7.25%. The export of information services during the period under review declined by 22.97%. Amongst the telecommunication services, the export of call center services increased by 5.22%, while the export of other telecommunication services decreased by 3.56%.
The State Bank of Pakistan (SBP) has advised banks to provide digital channels for the opening and operation of special foreign currency accounts. Banks can now facilitate outward remittances from the retained proceeds through the issuance of corporate debit cards after conducting necessary due diligence. The SBP believes that these amendments will incentivize new entrants in this field to focus on exports and enable existing exporters to boost their business, thus creating employment opportunities and increasing foreign exchange earnings for the country.