The IT Industry Might be the ‘it’ Industry
In the fiscal year 2022, the Pakistani IT industry earned a record-breaking revenue of $2.6 billion, a breakthrough unseen in previous years. The industry which includes telecommunication, computers and information services is the largest net services exporter of the country as it caters to 169 countries, more than any other services exporter, according to the Economic Survey. Yet it remains unexplored and unexploited.?
Pakistan is viewed and defined largely as an agro-based country. With its largest export sector being textile, making up 61% of the total exports in the fiscal year 2021-2022. Textiles play a significant role in supporting Pakistan’s economy as the country largely depends on it for foreign exchange. However, the textile sector often struggles to maintain a consistent figure in production.
With cotton being one of its most important raw materials, unpredictable weather conditions damaging cotton yields, accompanied with an increase in gas and electricity tariff puts a strain on the import bill as textile industries find it difficult to meet the local demand.?
The IT industry may just pose itself as a solution for the country to focus on a more viable stream of foreign exchange, not just strengthening the economy but also the rupee against the dollar which traded for 236.84 in the interbank in September 2022, according to State Bank of Pakistan.?
The IT industry may just pose itself as a solution for the country to focus on a more viable stream of foreign exchange
The government has already taken certain steps to increase investment and attract more people into this industry. One of them being the construction of an IT park in Karachi. A loan has been signed between the Economic Affairs Division and EXIM Bank of Korea worth $158 million for the establishment of Pakistan’s largest IT Park.?
The IT park would not only have the latest state-of-the-art facilities providing services to clients all around the world 24/7, but also software testing labs, business incubation centers, technology commercialization centers, exhibition halls, auditoriums, daycare centers and other ancillary facilities.
Another step of advancement being the focus on infrastructure development through the establishment of Software Technology Parks (STPs). This would expand Pakistan’s tech ecosystem beyond Islamabad, Lahore and Karachi, thus contributing to the local economies through expansion of the tech industry, export earnings growth and employment generation.
Overall, there is a growing recognition of the need to educate and inspire the youth to nurture a force of IT experts. A document published by the Pakistani government states that 10,000 students become IT graduates every year, adding to a pool of 300,000 IT experts. Furthermore, 60% of Pakistan’s population belongs to the 15 to 29 age group, meaning technology zones can encourage a higher number of jobs, along with investment in training and employee care.
10,000 students become IT graduates every year, adding to a pool of 300,000 IT experts
While it might take some time before we see the results of these investments, it can surely be said that it is a step in the right direction.