Muneeb ur Rehman

The information technology-enabled services industry in Pakistan holds significant potential for driving economic growth by facilitating job creation, fostering export growth, and promoting software development, says a senior official. Speaking to WealthPK, Babur Majid, Chief Executive Officer (CEO) of the National Information Technology Board (NITB), said the IT sector can create more jobs in the services sector. With a population of more than 220 million people, of which 60% are in the young age bracket, IT services can absorb a digitally literate labour force.

According to the Pakistan Bureau of Statistics (PBS), Pakistan generated a revenue of $1.523 billion by offering a range of IT services to diverse countries during the first seven months (July-January) of the ongoing fiscal year (2022-23). This figure indicates a growth rate of 2.38% when compared to the previous fiscal year.

Quoting the example of transport services, Babur mentioned the rapidly growing trend of using the internet for transport services. “The expansion of high-speed internet to far-flung regions of the country will further accelerate the logistics sector,” he added. “IT-enabled services link the potential employees with the companies that facilitate them in searching for jobs relevant to their skill set,” he asserted. Babur pointed out that freelancing in Pakistan is making substantial progress, as the young educated youth are providing services to foreign companies and clients online.

Pakistan has been ranked fourth in terms of the growth in the freelance market. The official said the freelance market will grow in the future as the outreach of the internet with the introduction of 3G/4G across many peripheral regions is expanding. According to a report by the Ministry of Science, ITes (IT-enabled services) sector is fast growing through its contribution of almost 1% to the gross domestic product, which stands at $3.5 billion in absolute terms.

He further highlighted the importance of IT for knowledge economy. “Information technology has become a pivotal facilitator in the evolving dynamics of the economy driven by knowledge,” he emphasised. He said software production is yet another area that can provide avenues for export promotion. “There is a vast pool of over 300,000 IT professionals in Pakistan who possess extensive knowledge and skills in both established and cutting-edge IT products and technologies,” he mentioned.

In order to capitalise on the IT-enabled services, Babur put emphasis on various policy options, including formulation of essential policy frameworks, legislation, and regulations to foster the development of a sustainable IT ecosystem, encompassing the establishment of a data protection statute besides promoting software parks. Fostering the growth of the IT-enabled services sector will positively impact the country’s economy.

Credit: Independent News Pakistan-WealthPk