The IT & ITeS Industry of Pakistan has achieved a trade surplus of $1.17 billion, which accounts for 87.47 percent of total ICT export remittances, during the July to December period of the fiscal year 2022-23 (FY23). This is an increase of 19.96 percent compared to the same period in FY22, where the trade surplus was $972 million.
The Ministry of Information Technology and Telecommunication (MoITT) revealed that the IT & ITeS sector has delivered the largest trade surplus across services and the second-highest across goods and services, after the textile sector. Pakistan’s IT & ITeS industry exports services to more than 170 countries and territories, with the US being the largest market, accounting for 57 percent of the export remittance receipts, followed by the United Kingdom (8 percent), United Arab Emirates (7 percent), Singapore (5 percent), and Ireland (4 percent).
The IT & ITeS Industry is contributing significantly to Pakistan’s exports and foreign exchange earnings. During the July to December period, the industry realized export remittances of $1.333 billion, which is the highest among all services, accounting for 37.8 percent of the total export of services. This is a 2.4 percent increase compared to the $1.302 billion reported for the same period last year.
Over the past 5 years, the IT & ITeS exports have grown significantly, with a compound annual growth rate (CAGR) of 30 percent and an upward growth of 178 percent. This is the highest growth rate compared to all other local industries in services, even higher than the textile sector which stands at 148 percent. The Pakistan Software Export Board (PSEB) has developed a comprehensive IT & ITeS Export Enhancement Framework, providing a roadmap of initiatives and programs to be carried out on both the demand and supply sides, enabling the IT sector to reach annual export remittance receipts of $15 billion in five years.