ITT sectors are growing rapidly thanks to the China-Pakistan Digital Corridor

KARACHI:

The Pakistan Economic Survey 2024 highlights significant growth prospects in the IT and telecommunications sectors, driven by the China-Pakistan Digital Corridor. The Joint Working Group on Information Technology Industry (JWP) under the China-Pakistan Economic Corridor (CPEC) is tasked with strengthening and developing information and communication technology infrastructure in China and Pakistan. The aim of this group was to create a China-Pakistan digital corridor, strengthen investment cooperation in the digital economy, and support the development and implementation of new digital technologies and applications.

SI Global Solutions CEO Noman Said shared his views with The Express Tribune, stating, “This initiative, part of CPEC, aims to improve digital connectivity through enhanced fiber optic networks, data centers and cloud computing capabilities. These developments are expected to attract significant Chinese investment, boost local start-ups, create employment opportunities and position Pakistan as a regional technology hub.”

He further explained that the IT sector, thanks to competitive labor costs and skilled manpower, has high growth potential in terms of software development and IT services. The development of 4G networks and the upcoming rollout of 5G networks further highlight the promising future of telecommunications in Pakistan.

Said stressed the need for a long-term policy framework to maintain and maximize these opportunities. In this regard, the role of the Special Investment Facilities Board (SIFC) is commendable. By streamlining regulatory processes and supporting a business-friendly environment, SIFC plays a pivotal role in making it easier to do business, in particular through initiatives such as single window service, which simplifies administrative procedures for investors.

He added that a strategic focus on digital transformation and supporting policies bodes well for Pakistan’s economic growth and technological progress. Finance Minister Muhammad Aurangzeb at Tuesday’s press conference also stressed the need for growth in the country’s two main sectors, namely agriculture and IT, where local people can achieve significant growth on their own.

The study shows that the potential impact of investment in the IT and telecommunications sector in the country is huge and wide-ranging. By leveraging technology, Pakistan can boost economic growth, generate jobs, increase foreign exchange earnings, improve productivity across industries, promote innovation and entrepreneurship, and enhance its global competitiveness. Strategic investments in infrastructure, human capital development and an enabling environment for technology-enabled enterprises are important steps towards unlocking the full potential of Pakistan’s IT and telecommunications sectors, thereby supporting sustainable economic growth and the prosperity of the nation.

The study suggests that the country’s digital landscape is undergoing a profound transformation, opening up new opportunities for growth, development and prosperity.

The Pakistan Software Export Board (PSEB) said in a survey that the ICT sector in Pakistan has shown significant growth. There are over 20,000 IT and IT services (ITeS) companies registered with the Securities and Exchange Commission of Pakistan (SECP). The value of remittances from ICT exports increased from USD 339 million to USD 2.283 billion in FY2024 (July-March) compared to USD 1.944 billion in the previous year. In March 2024 alone, remittances from ICT services exports increased to $306 million, an increase of 36% compared to March 2023. The IT and ITeS industry achieved a trade surplus of $1.996 billion, the highest among all services, while the entire services sector recorded a trade deficit.

Pakistan’s ICT industry exports to 170 countries and territories. The top 15 export destinations of Pakistan’s ICT industry are USA, UK, UAE, Ireland, Singapore, Canada, China, Saudi Arabia, Germany, Norway, Sweden, Australia, Switzerland, Japan and Malaysia.