Pakistan’s actual IT exports are around $8 billion: Ex Chairman P@SHA

Pakistan’s IT sector exports are actually around $8 billion, more than double than that reported by State Bank of Pakistan, because exporters don’t bring most of the export receipts home, former Chairman P@SHA Zohaib Khan claimed.

State Bank of Pakistan (SBP) reported $2.6 billion in IT exports for 2022-23 and $3.2 billion for 2023-24. But, SBP only records the exports against which proceeds are realized, Khan said adding actual exports far exceeded these numbers. IT exporters keep most of their earnings stashed in foreign accounts.

He projected addition of 300,000 to 500,000 IT professionals in the next five years, which is expected to boost exports by average 40% to $20-$25 billion annually in five years.

Khan, who has led Pakistan's IT delegation to 14 countries over two years, emphasized on the minimalist approach that could enables individuals to earn in US dollars from home or establish successful software houses with just laptops, internet, and skills.

There are ongoing issues with dollar penetration, but they are being tackled by allowing 50% USD repatriation via corporate debit cards.

However, a 10% tax cut remains a challenge. Khan suggests using alternative payment options, reducing tax cuts, and improving internet banking.

Pakistan's IT industry has notable achievements, such as developing the UAE's national payment gateway, creating 60% of Africa's stock market software, providing solutions for top automobile industries, and generating $400-500 million in gaming exports.

IT parks are being developed in Islamabad and Karachi with Korean investment. Khan emphasized the need for IT education, better internet connectivity, positive messaging, and social media awareness. He concluded, "The IT sector is Pakistan's future."