World News | Pakistan’s IT Sector Experiencing Slow Growth, Falling Short of Expectations in FY 2023: Report

Islamabad [Pakistan], July 22 (ANI): Pakistan’s IT sector is experiencing slow growth, falling short of expectations in the fiscal year 2023, according to Dawn.

Dawn is a Pakistani English-language newspaper.

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According to recent reports, Pakistan’s IT exports reached a mere USD 2.6 billion, marking a 15 per cent increase from the previous year.

Despite witnessing a slight growth, the rate has slowed down to its lowest level since FY 2016, with export inflows remaining flat compared to the previous year.

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Topline Securities, ICT analyst, Nasheed Malik, in his research report, highlighted that the growth rate of IT exports in FY 2023 significantly falls short when compared to the Compound Annual Growth Rates (CAGR) of the past five, ten, and 15 years, which stood at 19.5 per cent, 12.5 per cent, and 16.3 per cent, respectively.

Two key factors contributing to this slowdown are the retention of income abroad by tech companies and the global economic slowdown, which has impacted IT exports, reported Dawn.

As a result, experts in the field are voicing their concerns and suggestions to propel the IT sector forward.

Speaking to The Express Tribune, Kapeel Kumar, an ICT expert, said, “Pakistan can do better in terms of IT exports.”

He also stressed the importance of attracting more foreign investment, developing skilled IT professionals and promoting the IT sector to international buyers.

To tackle the issue of dwindling foreign investment in the IT sector, experts have proposed that the government offer tax breaks and incentives, the report stated, adding that collaborations with universities and colleges to develop more IT training programmes would also help in nurturing skilled IT professionals for the industry.

Additionally, promoting the IT sector at international trade shows and conferences and facilitating connections between Pakistani IT companies and potential buyers through chambers of commerce and business organisations could enhance global visibility, suggested Kumar, reported Dawn. (ANI)

(The above story is verified and authored by ANI staff, ANI is South Asia's leading multimedia news agency with over 100 bureaus in India, South Asia and across the globe. ANI brings the latest news on Politics and Current Affairs in India & around the World, Sports, Health, Fitness, Entertainment, & News. The views appearing in the above post do not reflect the opinions of LatestLY)