Tuesday, August 28, 2018

State Bank: Pakistan IT Exports Surge to Pass Billion Dollars in 2018

Pakistan's information technology exports have bucked the nation's declining exports trend with double digit growth to reach $1,065 million in fiscal year 2018, according to the State Bank of Pakistan.  It is generally believed that Pakistan's central bank underestimates technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.

Source: State Bank of Pakistan

Pakistan IT exports surged 13.4% to $1.06 billion in fiscal year 2018 from $939 million in fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in fiscal year 2017.

Source: State Bank of Pakistan

About $320 million of IT exports revenue in fiscal 2018 came from software exports while the rest was made up of services such as consulting, telecom and call centers.

Online Labour Index top 20 worker home countries, 1-6 July 2017

Freelancers in Pakistan are benefiting from the growing access to broadband connections which are now being used by over 50 million Pakistanis across the country. Pakistan is ranked 4th in the world by the freelancing industry report.  The country has rapidly increasing human capital of technologists.

Growth in IT exports is a good sign for Pakistan's export diversification beyond commodities such as textiles and food. In addition, air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.

Related Links:

Haq's Musings

South Asia Investor Review

Tech Jobs Moving to Pakistan

Pakistan Made Airplanes Lead Nation's Defense Exports

Pakistan Ranks High Among Top Outsourcing Destinations

Riaz Haq on Pakistanis in Silicon Valley

Can Pakistan Avoid Recurring BoP Crises?

Pakistan Launches NUTECH to Prepare 21st Century Workforce


Anonymous said...

*yawn*. meanwhile India has 111 billion usd exports.

Globosoft said...

SBP only tracks the money transfers coming into IT company's bank accounts. All other channels of money transfers considered as remittances. Freelancers do not open company bank accounts.

Omer S. said...

Back in 2000 Pervez Musharraf with Dr. Attaurrehman established many universities to achieve a target ' Pakistani youth must be IT literate' the access to this education was nearly non existent in #Pakistan back then

Riaz Haq said...

Anon: " India has 111 billion usd exports."

True but India's IT exports are growing 3.8% while Pakistan's IT exports are growing 13.4% a year.


And the bulk of India's IT exports are made up of H1B worker wages that India counts as exports.


India's IT exports will come under pressure with increasing H1B denial rates