NATIONAL IT EXPORT STRATEGY UNDER UMBRELLA OF SIFC

Hira Tahir

Pakistan, with its population of 249.5 million and a substantial proportion of young people, holds great potential as a thriving tech destination on the global stage. However, this potential can only be fully realized if we provide a streamlined and supportive environment for businesses to establish themselves. This is precisely what the Special Investment Facilitation Council (SIFC) aims to achieve. By offering a comprehensive and encouraging mechanism for setting up businesses, SIFC promises to attract increased investment to the IT industry. The initiatives taken by SIFC in the IT sector are commendable. The recent signing of a Memorandum of Understanding (MoU) with Saudi Arabia has significantly expanded SIFC’s global presence. This agreement not only facilitates Pakistani companies in the Kingdom of Saudi Arabia (KSA) but also encourages collaborative ventures and startup exchanges with Saudi tech incubators. Additionally, the initiation of the 5G Spectrum process, establishment of the Telecom Tribunal, and approval of the Telecom Infrastructure Sharing Framework have accelerated the development of the telecom sector, putting it on a fast track towards progress and growth As a result, it paves the way for foreign direct investment in Pakistan, which is vital for stabilizing and strengthening the country’s economy.

 In October, Pakistan witnessed a notable 15% growth in IT exports. To propel Pakistan’s IT sector to new heights, government of Pakistan has introduced the country’s inaugural IT and IT-enabled Services (ITeS) export strategy. This strategy sets a target to increase Pakistan’s IT exports to $10 billion within the next three years. Currently, the official figures indicate that Pakistan’s IT exports stand at $2.6 billion. By adding an additional 200,000 skilled professionals to the existing IT workforce, the aim is to elevate exports to $5 billion.

 Moreover, the IT export strategy includes provisions such as the dollar retention facility, which will enable IT companies to retain their foreign currency earnings. This measure alone is expected to contribute an additional one billion dollars to the overall exports. The strategy has been developed by the Pakistan Software Export Board (PSEB) in collaboration with international partners, including PricewaterhouseCoopers (PwC). This collaborative effort is in line with Pakistan’s vision to boost IT exports and strengthen the country’s position in the global tech industry.

 The IT export strategy holds immense potential as it outlines a clear vision that emphasizes the importance of human resource development, capacity building, the facilitation of freelancers, the establishment of startup funding initiatives, and the fostering of a robust IT ecosystem. It presents a significant opportunity for Pakistan to elevate its IT/ITeS export revenues to a range of $10-$18 billion by 2028. Achieving this target would position Pakistan as a global IT hub while also resulting in a substantial increase in the domestic industry to over $6 billion annually.

 Furthermore, the growth and development of the IT/ITeS industry will not only bring advantages to associated sectors but also have a positive impact on the overall economy. Industries such as e-Commerce, Financial Services, and the provision of public services like e-Government will experience significant benefits from the expansion of the IT/ITeS sector. The increase in Pakistan’s IT/ITeS exports will be driven by the global growth in IT markets. To ensure sustained growth and success, Pakistan must prioritize a substantial training and skills initiative over the next five years. This initiative will equip individuals with the necessary knowledge and expertise to meet the demands of the evolving IT landscape and contribute to the country’s position as a leading player in the global IT industry.