Pakistan’s IT Sector: A Driving Force Towards Innovation, Development

Yasrab Iftikhar

Lahore: As Pakistan grapples with the challenges of a swiftly evolving global landscape, a robust IT industry emerges as a crucial catalyst for driving innovation, nurturing research, and fostering technological development.

It also positions Pakistan to secure a spot among developed nations. Fully harnessing this sector’s potential is paramount for Pakistan, not only in attracting foreign investment and fostering partnerships but also in propelling the nation towards a progressive economy and steering it away from financial constraints.

A thriving IT sector can serve as a bulwark, reducing reliance on traditional industries, with the youthful population emerging as a strategic asset for nation-building. This can propel Pakistan to flourish across various spheres of life.

“The Information Technology (IT) sector has demonstrated consistent year-on-year growth, positioning itself as one of the top five net exporters in the country,” remarked Zohaib Khan, Chairman of the Pakistan Software Houses Association.

“As a primary contributor to net exports in the services industry, the IT sector plays a pivotal role in shaping Pakistan’s economic landscape,”  Zohaib said.

 “With the potential to become the country’s primary foreign exchange earner and achieve an ambitious annual national target of over US$15 billion, it is crucial to embrace a comprehensive approach to propel this sector forward.”

‘Human Capital Key’

According to the Pakistan Telecommunication Authority (PTA), Pakistan’s telecom sector generated Rs 850 billion in revenues in 2022-23, marking a 17 percent growth from the previous year and demonstrating the sector’s resilience amidst challenges of inflation, high business costs, and economic slowdown.

In its report, the PTA mentioned substantial investment potential in this sector, with local industry investments of $5.7 billion and FDI worth $1.4 billion over five years from 2018-19 to 2022-23. Moreover, the sector contributed Rs 1.27 trillion to the national treasury from 2018-19 to fiscal 2022-23.

“Pakistan’s IT landscape is bright, dynamic, and filled with opportunities,” remarked former IT Minister Dr Umar Saif. “Human capital is our biggest strength and needs monumental up-skilling initiatives to ensure that they not only meet the demands of the present digital age but also secure space for future flourishing.”

He emphasized leveraging the vast potential of our freelance community to foster innovation, diversity, and economic inclusivity, transcending geographical boundaries. “To drive this creativity engine, we must also establish strong funding mechanisms for startups.”

Additionally, the PTA report suggests reducing the cost of doing business and implementing cost-effective strategies to meet capacity demand. This is crucial for extending connectivity to underserved areas in the country.

In the context of launching 5G, the PTA has highlighted the importance of developing the necessary infrastructure to introduce 5G services effectively and efficiently.

Tech Transformation Roadmap

The Pakistan Software Export Board (PSEB) has meticulously crafted a strategic roadmap. Informed by industry insights and extensive research, this roadmap delineates a clear and precisely defined path to position Pakistan as a global technology hub.

It pinpoints five priority IT/ITeS market segments characterized by significant global market growth and fair competition, highlighting the importance of fostering skills development, enhancing infrastructure, and implementing strategic projects and policies to facilitate business growth.

The overarching objective is to cultivate a robust and thriving environment conducive to innovation, development, and sustained progress within Pakistan’s IT industry.

“Pakistan’s Information Technology (IT) sector is emerging as a distinctive source for software development, business process outsourcing, and freelancing,” remarked Tanveer Nandla, CEO of iSkills.

Pakistan’s IT Potential

Tanveer Nandla emphasized the dynamic nature of Pakistan’s IT sector, highlighting its diverse ecosystem composed of businesses, experts, academics, and policymakers.

He emphasized the range of services offered by Pakistani IT firms, including the development of high-end software, systems integration, mobile apps, gaming, animation, consultancy, and BPO services.

Additionally, he mentioned the expertise in telemarketing, technical support, transcription, and invoicing, along with the presence of multinational corporations establishing global consulting services centers, research and development facilities, and BPO support services institutes in Pakistan.

Nandla pointed out ample opportunities in the IT and ITeS sector for both domestic and foreign investors, such as company mergers and acquisitions, IT startups, venture capital funds, IT parks, software development, research labs, and technology incubators.

He expressed optimism about the sector’s future, citing Pakistan’s significant talent pool of graduates excelling in computer science, engineering, and mathematics, which provides intellectual capital for progress and creativity.

Acknowledging incentives by the PML-N government for IT development, Nandla urged leveraging Pakistan’s strategic location to become a gateway to Middle East, Central Asia, and South Asian markets, benefiting IT firms seeking international expansion. 

He stressed the need for better internet connectivity, financing for new enterprises, and skill enhancement to fully tap into Pakistan’s potential and compete globally.

Nandla advocated for a strategic vision centered on enhancing demand for Pakistan’s IT industry through international marketing, positioning Pakistan as an IT hub, and maintaining close collaboration with embassies and trade missions for global outreach.

He also highlighted the importance of focusing on the telecom and wireless sectors, aiming to bolster infrastructure, expand fiber networks, and embrace cutting-edge technologies.

The report was released by APP. It is reprodcted by The penPk.com.

All information and facts provided are the sole responsibility of the writer.