Pakistan IT exports surge 30% amid firewall concerns
ISLAMABAD, PAKISTAN — Pakistan’s IT sector achieved a significant milestone with a 30% increase in exports, reaching $286 million in July of the current fiscal year.
This growth was announced by Shaza Fatima Khawaja, Minister of State for IT and Telecommunication, during a meeting led by Prime Minister Shehbaz Sharif.
The meeting focused on reviewing various IT projects, including the Islamabad IT Park and the Digital Smart Cities initiative.
Government initiatives fuel Pakistan’s IT sector growth
Minister Khawaja credited this surge to the government’s efforts to enhance Pakistan’s IT industry’s global competitiveness. She praised Prime Minister Sharif’s dedication to advancing the sector and highlighted the Islamabad IT Park as a pivotal project.
The park’s completion date has been moved up to February 2025 thanks to expedited work by the Korean firm managing its construction. According to Prime Minister Sharif, this project is essential to achieving the government’s target of $25 billion in IT exports.
Digital smart cities and IT advancements
The meeting also covered progress in the Digital Smart Cities initiative, with Islamabad set to pilot a project offering 150 services via the Islamabad City Super application. This app aims to streamline access to government services, covering areas such as health, education, and law enforcement.
Over the past five months, the IT sector has seen a 30% rise in exports, the registration of 300,000 students in IT skill programs, and the creation of four new incubation centers.
Mobile phone production has increased by 30%, and mobile users have grown by 800,000. Officials anticipate that ongoing investments, totaling $77 million, will boost IT exports by an additional $2.5 billion.
National firewall raises concerns for IT industry
Despite these achievements, the IT sector faces challenges, notably from the national firewall and slow internet speeds. Minister of Commerce Jam Kamal expressed concerns about these issues during a briefing to the National Assembly Standing Committee on Commerce.
He stated that these factors are negatively impacting IT exports and plans to address them in the federal cabinet.
The Pakistan Software Houses Association (P@SHA) also warned of potential financial losses of $300 million due to the national firewall.
The firewall, intended to regulate internet usage and track IP addresses, has led to prolonged internet outages and disrupted business operations.
P@SHA has called for an “immediate and unconditional halt to this digital siege” and urged the government to engage in dialogue with industry stakeholders.
Future prospects and plans for Pakistan’s IT sector
Looking ahead, the government aims to increase exports to $60 billion by 2029, focusing on reducing production costs, lowering policy rates, and cutting tariffs.
Investments from Europe, the Gulf, and other regions are expected to boost exports further. Minister Kamal emphasized the need to enhance export growth, noting that 48% of revenue currently relies on imports.
While the government had previously denied the firewall’s existence, recent confirmations indicate a move to upgrade the national web management system to address cybersecurity threats. This development underscores the need for a balanced approach that protects national interests without stifling innovation and growth in Pakistan’s burgeoning IT sector.
