Pakistan has emerged as the world’s most financially attractive destination for IT and IT-enabled services (ITeS) outsourcing, according to the Economic Survey 2023-24 released last week.
This ranking is based on Kearney’s 2023 Global Services Location Index. The economic survey also highlights the significant growth of Pakistan’s ICT sector, with over 20,000 IT and ITeS companies registered with the Securities and Exchange Commission of Pakistan (SECP). These companies cater to both domestic and international markets.
The ICT sector’s contribution to the national economy is substantial. During the fiscal year 2024 (July-March), ICT exports reached a record high of $2.283 billion, making it the leading service sector export category. This figure represents nearly 39.31% of the total service sector exports, surpassing “Other Business Services” which came in second at $1.205 billion.
Pakistani freelancers are also contributing significantly to the economy. During the same period, remittances sent home by Pakistani freelancers totaled $350.15 million.
The government is actively promoting the growth of the IT sector. The Pakistan Software Export Board (PSEB) launched its first-ever women’s software technology park at the Women’s University of Bagh, AJK, in FY 2024.
Pakistan’s National Incubation Centers (NICs) have also played a crucial role in fostering entrepreneurship. As of March 31, 2024, these centers have incubated over 1,480 startups, with more than 710 graduating successfully. These successful startups have created over 128,000 jobs, attracted a total investment exceeding Rs. 23 billion, and generated a combined revenue of more than Rs. 16 billion. Notably, over 2,800 women entrepreneurs have benefited from these programs.
The economic survey also points to the resilience of Pakistan’s telecom sector. During FY 2024, the sector expanded its services and generated an estimated Rs. 735 billion in revenue. As of March 2024, the total number of telecom subscriptions (mobile and fixed) reached 194 million, pushing the national teledensity up to 80.7%. The telecom sector directly contributed Rs. 213 billion to the GDP during this period.
The report emphasizes the importance of information technology and telecommunication in driving digital transformation across various sectors. These technologies are transforming finance, healthcare, education, agriculture, and government services, leading to improved service delivery, wider accessibility, and efficiency gains, ultimately contributing to Pakistan’s overall economic development.
