Pakistan's IT sector exports soar to record high in December

Pakistan's information and technology (IT) sector recorded a record increase in its exports in December 2023, reaching $303 million for the first time in the country's history, reported 24NewsHD TV channel Wednesday.

This was a 23 percent rise compared to the same month in 2022, when the exports were $246 million.

According to a report by the State Bank of Pakistan, the average IT exports last month were $22.2 million, which was significantly higher than the previous months. The report attributed the increase to various initiatives taken by the government and the central bank to facilitate the IT exporters.

Some of these initiatives included increasing the limit of specialized foreign currency accounts from 35 percent to 50 percent, allowing IT exporters to retain more of their earnings in foreign currency. The report also said that the measures taken to stabilize the value of the rupee against the dollar had a positive impact on the inflow of IT exports.

The Federal Minister of Information and Technology also claimed that IT companies were withholding $1 to $2 billion due to difficulties in repatriating their funds, which were resolved by the government.

He said that in the first six months of this financial year, IT exports increased by 9 percent to $1.5 billion, compared to $1.03 billion in the same period last year.

The report also mentioned that the government had recently launched a Pakistan startup fund, which would invest Rs. 2 billion as equity free capital in startups every year.

This was expected to boost the innovation and entrepreneurship ecosystem in the country and create more opportunities for IT exports.

Reporter: Ashraf Khan