Tuesday, July 23, 2024

Pakistan Ranks World’s Most Financially Attractive IT Outsourcing Destination, Report

Pakistan has been recognized as the top global destination for financial attractiveness in IT outsourcing, according to the Economic Survey 2023-24. The survey highlighted Pakistan’s burgeoning Information and Communications Technology (ICT) sector, affirming its status as the most lucrative hub for IT and IT-enabled services (ITeS) outsourcing worldwide.

The ICT sector in Pakistan has demonstrated substantial growth, with over 20,000 IT and ITeS companies registered with the Securities and Exchange Commission of Pakistan (SECP).

These companies are engaged in both domestic operations and export-oriented ventures. During the fiscal year 2024 (July-March), exports from the ICT sector reached an impressive $2.283 billion, representing 39.31% of total service exports. ‘Other Business Services’ trailed behind at $1.205 billion during the same period.

Moreover, Pakistan-based freelancers significantly contributed to foreign exchange earnings through remittances, amounting to $350.15 million in FY 2024 (July-March). The growth and development of Pakistan’s ICT sector have been underscored by these robust figures, showcasing its pivotal role in the country’s economic landscape.

In a landmark development during FY 2024, the Pakistan Software Export Board (PSEB) inaugurated its first women’s software technology park at the Women’s University of Bagh in Azad Jammu and Kashmir (AJK). This initiative is part of broader efforts to empower women in technology and foster entrepreneurship.

The National Incubation Centers (NICs) in Pakistan have also played a crucial role in nurturing startups. As of March 31, 2024, over 1,480 startups have been incubated, with more than 710 successfully graduated. These startups have collectively generated over 128,000 jobs, received investments exceeding Rs. 23 billion, and generated revenues surpassing Rs. 16 billion.

Furthermore, the telecom sector in Pakistan has exhibited resilience, expanding its services and contributing significantly to the economy. During FY 2024 (July-March), telecom revenues were estimated at Rs. 735 billion, with total subscriptions (mobile and fixed) reaching 194 million. The sector’s direct contribution to the GDP amounted to Rs. 213 billion during the same period.

The integration of information technology and telecom services has enabled digital transformation across various sectors including finance, healthcare, education, agriculture, and government services.

This digitalization drive has led to improved service delivery, increased accessibility, and enhanced efficiency, thereby driving overall economic development in Pakistan.

The Economic Survey 2023-24 marks a milestone in Pakistan’s journey towards economic recovery and stabilization, providing valuable insights into key growth catalysts and macroeconomic indicators.

It serves as a vital resource for policymakers, development partners, researchers, academia, and the general public alike, showcasing Pakistan’s ascent as a premier destination for IT outsourcing globally.

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