Pakistan has always been an agrarian economy and with its abundance of natural resources, it has flourished with the passage of time. This pattern is still present, but Pakistan’s rise as a modern nation can be attributed to the growth in the IT industry and services sector.
Nowadays, we see that the majority of Pakistanis have started using computers and other devices which work on the internet because it has made their lives easy and they can do their work without any hassle and delay. This has led to a vast increase in the number of skilled workers, due to which the export of these services has also increased.
In recent years, the surge in the IT industry has resulted in the provision of high paying jobs for professionals by creating well-paid employment opportunities for them. It has also helped the government and private businesses to prosper. The IT industry contributes around 7 percent of Pakistan’s GDP and employs hundreds of thousands of professionals who work in different areas such as banking, telecommunications, healthcare, education etc.
In the light of State Bank of Pakistan statistics, during fiscal year 2020/21, Pakistan’s IT exports increased 47.4 percent, and crossed the $2 billion milestone for the first time in the country’s history, whereas, in fiscal year 2019/20, the exports were $1.44 billion.
Pakistan’s IT industry is growing at an exceptionally fast rate because of some key factors including competent youth coming up with innovative ideas and collaboration with foreign countries to meet the IT needs of growing companies in Pakistan; outsourcing services is another reason because it increases revenue and employment chances and an incessant increase in e-commerce activities is also boosting the IT industry growth at a fast pace.
Although many factors create an environment of success for the industry, two major factors need to be highlighted here. One is a collaboration with foreign countries, and the second is coming up with Special Economic Zones (SEZs).
By collaborating with foreign countries, Pakistan’s IT industry has imported knowledge, upgraded technology and enhanced its capability to produce merchandise that can be exported out of the country and at the same time, Special Economic Zones provide a business environment where all taxes and duties are exempted on production units. This system has accelerated growth by attracting big companies dealing in information technologies.
Both these factors have changed the whole scenario because now it has become a level-playing field for local and foreign investors. The IT companies in Pakistan provide employment to hundreds of professionals who work in different areas such as banking, telecommunications, healthcare, education etc.
That’s why during the last few years, we have seen a sharp increase in the number of Pakistani students opting for the field of Information Technology.
Even universities are now making significant changes in their curriculum for degree programmes in computer science and IT, which provide a better understanding to all those interested. In light of the above stated facts, it could be rightly asserted here that a coordinated effort of both the government and the business community is the need of the hour to uplift the level of the country’s economy and exports to an improved stage.