IT sectors are soaring with the China-Pakistan Digital Corridor

KARACHI:

The Pakistan Economic Survey 2024 has highlighted significant growth prospects in the IT and telecommunications sectors, driven by the China-Pakistan Digital Corridor. The Joint Information Technology (IT) Working Group under the China-Pakistan Economic Corridor (CPEC) is dedicated to improving and developing the information and communication technology infrastructure of China and Pakistan. This group aims to build a China-Pakistan digital corridor, strengthen investment cooperation in the digital economy, and support the development and implementation of new digital technologies and applications.

SI Global Solutions CEO Noman Said shared his views with The Express Tribune, stating, “This initiative, part of CPEC, aims to enhance digital connectivity through improved fiber optic networks, data centers and cloud computing capabilities. These developments are expected to attract significant Chinese investment, boost local startups, create job opportunities and position Pakistan as a regional technology hub.”

He also said that the IT sector, with its competitive labor costs and skilled workforce, has strong potential for growth in software development and IT services. The expansion of 4G and the impending introduction of 5G networks further highlight the promising future of telecommunications in Pakistan.

Said emphasized the need for a long-term policy framework to preserve and maximize these opportunities. In this regard, the role of the Special Investment Facilitation Council (SIFC) is commendable. By streamlining regulatory processes and promoting a business-friendly environment, the SIFC is instrumental in facilitating the ease of doing business, particularly through initiatives such as the one-window operation, which simplifies administrative procedures for investors.

He added that the strategic focus on digital transformation and supportive policies bode well for Pakistan’s economic growth and technological advancement. Finance Minister Muhammad Aurangzeb, in his press conference on Tuesday, also emphasized the need for development in two key sectors of the country, namely agriculture and IT, where local people can achieve substantial development on their own.

According to the survey, the potential impact of investments in the country’s IT and telecommunications sectors is vast and far-reaching. By leveraging technology, Pakistan can stimulate economic growth, create jobs, increase foreign exchange earnings, improve productivity in various sectors, promote innovation and entrepreneurship, and enhance its global competitiveness. Strategic investments in infrastructure, human capital development and a supportive environment for technology-based businesses are essential steps towards unleashing the full potential of Pakistan’s IT and telecommunications sectors, thereby enhancing sustainable economic growth and prosperity for the nation.

The research suggests that the country’s digital landscape is undergoing a profound transformation, opening up new opportunities for growth, development and prosperity.

The Pakistan Software Export Board (PSEB) stated in the survey that the ICT sector in Pakistan has shown significant growth. More than 20,000 information and IT services (ITeS) companies are registered with the Securities and Exchange Commission of Pakistan (SECP). Remittances for ICT exports rose from $339 million to $2.283 billion in fiscal year 2024 (July-March), compared to $1.944 billion in the previous year. In March 2024 alone, remittances from ICT services exports increased to $306 million, up 36% from March 2023. The IT and ITeS sector achieved a trade surplus of $1.996 billion, the highest among all services, while the overall sector of services recorded a trade deficit.

Pakistan’s ICT industry exports to 170 countries and territories. The top 15 export destinations for Pakistan’s ICT industry are USA, UK, UAE, Ireland, Singapore, Canada, China, Saudi Arabia, Germany, Norway, Sweden, Australia, Switzerland, Japan and Malaysia.