Pakistan’s IT sector has remained impressive throughout the current financial year, with consistent growth of above 40 percent in exports between July 2020 and February 2021.
According to data released by the State Bank of Pakistan (SBP), the export of IT and IT-enabled services had surged to $1.298 billion during July and February of the financial year 2020-21 as compared with the values of last financial year that had stood at $918 million. This shows an increase of $380 million or 41.2 percent, year-on-year.
The growth in exports has mainly been driven by the high demand for automation, e-commerce, software development, and other services of foreign clients who now prefer to place orders with Pakistani IT companies instead of other countries including India and the Philippines.
Industry experts have projected $2 billion worth of exports of the IT sector this year while considering the penetration of the local companies in various exportable countries in the different fields of the sector.
However, the local industry is fearful of being taxed heavily by the revenue collection authority, which may destabilize the prevailing trends of growth in the IT industry and its expansion.
The industry also fears being taxed as the government is mulling over the possible withdrawal of the tax exemption in the upcoming budget. It is demanding that the industry should be taxed duly after it achieves a sustainable level of maturity with a solid contribution to the economy.
The growth in the IT exports sector will strengthen the industry and facilitate the maintenance of the current account in surplus and the generation of employment for hundreds of skilled professionals.