Exploring Product-wise IT Export Trends in Pakistan: An Analysis of the Last 5 Years

Introduction: Information Technology (IT) is an essential sector in the global economy, and Pakistan is no exception. The IT industry in Pakistan has grown significantly over the years, contributing significantly to the country’s economic growth. According to the State Bank of Pakistan, IT exports from Pakistan stood at $2.123 billion in the fiscal year 2020-21, showing a growth of 47% as compared to the previous year. In this article, we will explore the product-wise IT export trends in Pakistan over the last five years.

IT Exports in Pakistan: Pakistan’s IT industry is export-oriented, with major export markets including the United States, the United Kingdom, Canada, the United Arab Emirates, and Saudi Arabia. The IT industry in Pakistan is mainly driven by software development, IT-enabled services, and business process outsourcing. The Pakistani government has taken several initiatives to boost the IT industry in the country, including tax exemptions, investment incentives, and infrastructure development.

Exploring Product-wise IT Exports in Pakistan: To analyze the product-wise IT export trends in Pakistan over the last five years, we need to consider different product categories. These include software development, IT-enabled services, and business process outsourcing.

Software Development: Software development is the largest contributor to IT exports in Pakistan. According to the Pakistan Software Export Board (PSEB), software development exports from Pakistan stood at $1.267 billion in the fiscal year 2020-21, showing a growth of 40% as compared to the previous year. The software development sector includes the development of software applications, enterprise resource planning (ERP) systems, and mobile applications.

ERP systems have become increasingly popular in Pakistan, with many businesses adopting them to streamline their operations. The demand for ERP systems is expected to grow further in the coming years, contributing to the growth of the software development sector in Pakistan.

Mobile applications are another area of growth for the software development sector in Pakistan. The increased use of smartphones has led to a surge in demand for mobile applications, providing an excellent opportunity for Pakistani software developers to tap into the global market.

IT-Enabled Services: IT-enabled services include call centers, data entry, and other related services. According to the PSEB, IT-enabled services exports from Pakistan stood at $490 million in the fiscal year 2020-21, showing a growth of 77% as compared to the previous year. Call centers are the largest contributor to IT-enabled services exports in Pakistan, accounting for over 70% of the total exports.

The call center industry in Pakistan has grown significantly over the years, with several multinational companies establishing their call centers in the country. The availability of a skilled workforce at a lower cost than other countries has made Pakistan an attractive destination for outsourcing call center services.

Business Process Outsourcing: Business process outsourcing (BPO) includes outsourcing of non-core business functions such as accounting, human resources, and procurement. According to the PSEB, BPO exports from Pakistan stood at $295 million in the fiscal year 2020-21, showing a growth of 73% as compared to the previous year. The BPO industry in Pakistan is still in its early stages, but the growth prospects are significant.

  1. Product-wise IT Export Analysis Now that we have explored the overall IT export trends, let’s dive into a product-wise analysis of IT exports in Pakistan over the last 5 years. This analysis will help us identify the specific products that have contributed the most to the growth of the IT industry in Pakistan.

4.1. Software Exports Software exports have been the biggest contributor to Pakistan’s IT industry over the years. According to the data provided by the State Bank of Pakistan, the software exports of Pakistan have increased from $384 million in 2016-17 to $630 million in 2020-21, showing a growth of 64%.

The software exports category includes exports of software development services, software consultancy services, and other software-related services. These services are in high demand globally, and Pakistan has been able to tap into this market and increase its software exports significantly.

4.2. Call Center Exports The call center industry in Pakistan has been rapidly growing over the years. According to the data provided by the State Bank of Pakistan, the call center exports of Pakistan have increased from $140 million in 2016-17 to $255 million in 2020-21, showing a growth of 82%.

The call center exports category includes exports of inbound and outbound call center services, telemarketing services, and other call center-related services. This growth in call center exports can be attributed to the availability of a large pool of talented and English-speaking human resources in Pakistan.

4.3. Computer Services Exports Computer services exports are also an important contributor to Pakistan’s IT industry. According to the data provided by the State Bank of Pakistan, the computer services exports of Pakistan have increased from $115 million in 2016-17 to $154 million in 2020-21, showing a growth of 34%.

The computer services exports category includes exports of computer programming, data processing, and other computer-related services. Pakistan has been able to tap into this market due to the availability of a large pool of skilled and affordable human resources.

4.4. IT Hardware Exports IT hardware exports from Pakistan have not been able to show significant growth over the years. According to the data provided by the State Bank of Pakistan, the IT hardware exports of Pakistan have increased from $10 million in 2016-17 to $18 million in 2020-21, showing a growth of 80%.

The IT hardware exports category includes exports of computer hardware, networking equipment, and other IT-related hardware. Pakistan has been able to tap into this market due to the availability of a large pool of affordable labor and a favorable business environment.

Conclusion: In conclusion, the IT industry in Pakistan has shown significant growth over the last five years. The product-wise analysis of IT exports in Pakistan shows that software development is the largest contributor to IT exports, followed by IT-enabled services and business process outsourcing. ERP systems and mobile applications are expected to be the areas of growth for the software development sector in Pakistan. The call center industry is the largest contributor to IT-enabled services exports, and the BPO industry is still in its early stages but has significant growth prospects.

Pakistan has been able to tap into the global demand for software development and call center services due to the availability of a large pool of talented and affordable human resources. However, there is still a lot of potential for growth in other product categories such as IT hardware exports.

The government and the IT industry in Pakistan need to work together to create a more favorable business environment for IT exports and encourage more investment in the industry. This can be done by providing incentives to IT companies and improving the infrastructure for IT exports.

Overall, the IT industry in Pakistan has shown significant growth over the years, and with the right policies and investments, it can continue to grow and contribute significantly to the country’s economy.

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