Being the second highest rated country in South Asia for tech entrepreneurship, Pakistan’s tech industry was already thriving. According to Forbes, over the last three years IT exports have surged by 70%, reaching another milestone in March 2024: Pakistan’s Information Technology (IT) exports increased to $306 million with a 37% year-on-year (YoY) and a 19% month-on-month (MoM) increase.
This record breaking turn of events has the potential to create numerous job opportunities, attract foreign investment, and drive innovation across various industries, ultimately leading to a more robust economy. Pakistan can further solidify its position as a global player in the IT sector by fostering an environment for tech startups and enterprises.
In an interview, Finance Minister Muhammad Aurangzeb stated that IT exports were likely to reach $3.5 billion in the fiscal year 2023-2024. In contrast, the estimated total for the entire fiscal year was a little over $3.1 billion. Nevertheless, the substantial growth highlights the sector's resilience and potential for continued expansion in the future.
Pakistan has also recently reached a staff-level agreement of a $7 billion loan with the International Monetary Fund (IMF), offering the government breathing room to stabilize an unsteady economy and manage its mounting debt. This financial support, coupled with the tech industry’s success can steer the economy towards prosperity.
The tech ecosystem finds relief from certain taxes in the form of exemptions offered by the Special Technology Zone Authority (STZA). Organizations situated in Daftarkhwan | Alpha, a Special Technology Zone, can apply for a Zone Enterprise License to get significant tax breaks.
Daftarkhwan hosts a great diversity of tech enterprises such as P@SHA, Tintash, OneByte, and EY. At the P@SHA Town Hall event, conducted at Daftarkhwan | Vanguard, Former Caretaker Minister for Information Technology and Telecommunications, Dr. Umar Saif, stated that with P@SHA’s help, IT exports have increased by 32% within just two months.
On another occasion he expressed,
“Unlike other manufacturing industries, the IT sector has a 60-70% trade surplus — this may hold the key to Pakistan’s economic woes.”
The tech boom in Pakistan marks a new era of innovation and growth. With a strong foundation, supportive policies, and a thriving startup ecosystem, Pakistan is on the path to becoming a significant competitor in the global tech industry.
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