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Over the last decade, Pakistan has emerged as one of the fastest-growing IT exporters in the world. It is one of the few industries that provide tangible benefits to the country without importing anything.
In the Fiscal Year 2022(FY22) Pakistani IT industry made a record-breaking remittance in the IT sector of $2.616 billion, shattering the records of all the previous years. Last year revenue from the IT sector of Pakistan was $2.108 billion, which has increased by 24% this year.
The Government of Pakistan has set a target of $5 billion for the next year, FY23. The Government holds massive plans for the upcoming years for the IT industry of Pakistan.
Here are some of the reasons why Pakistan can reach this goal.
Advancements in AI Labs
Progression is made on every level in the IT industry. In 2018 National Centre of Artificial Intelligence (NCAI), Lahore was built, which is now participating in all the international forums, representing Pakistan and trying to export quality AI products in Pakistan. NCAI is working hard day in and day out to train Pakistani students to excel in the field of AI and transfer impactful changes to the Pakistani economy.
Other than that, there are plenty of other public and private labs producing AI software and hardware, namely, ITU, NUST, LUMS, PUCIT, and FAST. These universities provide excellent latest exposure and practical study to enthusiastic IT students.
Incentives to IT Investors
The Government gives insane incentives to anyone related to the IT surge in Pakistan. The Ministry of Information Technology (MoITT) has provided a 100% tax credit for the income from IT exports and profits and gains from IT industries. These tax commodities are applicable till June 2025. MoITT has also declared to give 100% equity and repatriation to the foreign investors investing in Pakistan’s IT businesses.
The Government of Pakistan has given a universal tax holiday to all kinds of tech ventures in Pakistan till 2024.
Tech Startup Ventures
Pakistan has over 17,000 software companies all over the country, including AI, services providers, and telecommunicators. These not just bring remittance to the land but also provide job opportunities for young IT professionals and motivate them to excel in IT.
Freelancing Culture
Pakistan has this oversupply of tech freelancers that participate a ton in the IT exports of Pakistan. There are over 100,000 IT professionals working online remotely for international companies, and their salaries play a massive role in IT exports.
For over half a decade, some of the early movers of the IT industry have been selflessly trying to teach Pakistan’s youth the skills required to work as freelancers. People like Sunny Ali, Saqib Raza, Rehan Allahwallah, Azad Chaiwwala, and many others have created this cult of freelancers in Pakistan. The growth of these freelancers is exponential as it has become a hot topic and career choice for most young IT enthusiasts. Many freelancers have started opening their teaching institutes and software houses, which teach more students and bring more direct money from international clients to the Pakistani banks.
