Pakistan’s Software Service Exports Exceed $1 Billion

Pakistan’s software service exports have demonstrated steady growth in recent years, for the first time exceeding $1 billion over an 11-month duration.

Data from the State Bank of Pakistan (SBP) indicates that the nation generated $1.01 billion in foreign exchange through software service exports between July and May of the current fiscal year. This reflects a 27.4% increase compared to the $793 million recorded during the same period last year.

The overall IT and Information Technology Enabled Services (ITeS) exports amounted to $3.47 billion during this timeframe, with software consultancy services accounting for the largest portion (29.1%).

Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), noted that software consultancy services continue to be a primary strength of Pakistan’s IT sector, propelling overall IT exports to record levels.

He stated that the government and the Special Investment Facilitation Council (SIFC) are actively pursuing new markets, notably in the Gulf, the Association of Southeast Asian Nations (ASEAN), and Europe, to boost exports of software consultancy and related services.

Nizam added that these efforts, combined with the work of IT companies and organizations like the Pakistan Software Export Board, are expected to further stimulate Pakistan’s software exports in the coming years.

According to central bank figures, the IT sector generated $534 million from computer software, $298 million from call centers, and $199 million from telecommunication services.

Dr. Noman Said, an IT exporter and CEO of SI Global Solutions, attributed the increase in IT and IT-enabled service exports to the efforts of IT companies and supportive government regulations.

However, he suggested that IT companies should transform challenges into opportunities with the emergence of AI tools and solutions, which are scaling down the service demand of companies and professionals across the country.

He advised IT companies to concentrate on securing large-scale projects in international markets, encompassing software and hardware services, and the integration of IT applications across diverse sectors.

Pakistan is on track to reach $4 billion in IT and IT-enabled service exports. Nevertheless, analysts suggest it may slightly fall short of this goal by $100 to $150 million in the current financial year 2024-25, potentially due to internet disruptions.