Pakistan needs to encourage its information technology sector to maximize exports to international markets including the United States and overcome the twin challenges of trade and current account deficits, a technology investor says.
“There has been a 151 percent growth in the remittances coming to Pakistan over the last five years mainly due to information technology sector,” Mossadaq Chughtai says citing the economic survey of Pakistan.
The remittances the South Asian country received include IT-enabled services and Business Process Outsourcing (BPO) revenues sent by overseas Pakistanis to the country.
Pakistan’s total IT exports in a variety of areas have crossed $3.3 billion a year, even as the South Asian country struggles to increase its traditional textile and agricultural exports.
Importantly, Chughtai notes that mall and medium-sized enterprises and freelancers have brought in $500 million.
“That speaks a lot about the Pakistani skilled workforce and the IT sector potential to boost the stalemating economy — but these software exports and arts design stories should be multiplied through quality training,” he says.
Chughtai, who has made investments in some tech giants, Islamabad should go for ambitious IT export targets. At the same time, it should initiate incentives for technology innovation at educational institutions as well as encourage startups and the best performing companies.
“Pakistan’s IT story is a great promise – Hollywood and several American companies recognize the Pakistani talent.
“Pakistan should constantly update its IT education and produce students with qualification to come up with innovations in areas of the greatest demand internationally.
“We have the example of India whose annual IT exports are over $100 billion.”
Prime Minister Imran Khan’s government should come up with a plan to scale up IT exports as the country has a huge talented workforce.
“Textiles, rice and other commodities alone cannot ramp up the economic growth. Pakistan will have to bank on innovation of its people,” Chughtai said.
