Ali Hassan

The development and growth of software houses has played a crucial role in enhancing Pakistan's export potential, Muhammad Shahzaib Zahid, word press developer Signup Solution Software House told WealthPK. In recent years, Pakistan has emerged as a significant player in the global software industry. The availability of many skilled software engineers and developers is a key reason for the success of software houses in Pakistan.

“Our universities and educational institutions have played a vital role in producing a talented workforce with the required technical knowledge and expertise. These skilled individuals have demonstrated their abilities by delivering excellent software solutions for their clients within Pakistan and overseas,” he said.

“Having a large pool of talented professionals has enabled the software houses in Pakistan to compete globally and attract profitable projects, thus increasing the country's ability to export software services,” he added. According to the QS World University Rankings 2023, National University of Science and Technology (NUST) ranks 160^th globally in science and technology.

“The development of software houses has significantly contributed towards increasing the foreign reserves of countries worldwide. By exporting their software products and services, the software houses generate foreign currency inflows, directly contributing to the foreign reserves,” Shahzaib added. According to Pakistan Economic Survey 2022-23, IT exports during July-March FY2023 reached US$1.94 billion compared to US$1.95 billion during the same period last year. IT exports accounted for 35.1 percent of all services exports, the highest share among all sectors.

“Software development in Pakistan is much cheaper than in developed countries, which gives it a big advantage. Lower wages, along with the ability to produce high-quality software, make our software houses an attractive option for businesses that want cost-effective solutions without sacrificing quality. Because of this advantage, companies from all over the world choose to outsource their software needs to Pakistan. This not only helps the software industry in Pakistan to grow but also boosts the export earnings,” he said.

“Software houses and IT companies are becoming more successful these days because they receive payment in foreign currency, specifically dollars. In Pakistan, the minimum wage according to the Budget 2024 is Rs32,000. However, the average minimum wage for an employee in a software house is around $200 (approximately Rs57,000). Even with this higher average minimum wage, the owners of these companies are still making profits,” Shahzaib added.

“The government understands how important the software industry is and has done a lot to help it grow. They have created special places called technology parks, incubators, and special economic zones where software companies can grow. The government has also given tax benefits to encourage investment in the IT sector. These actions have attracted both local and foreign investment, which has helped software houses in Pakistan to grow and serve more clients,” he added.

According to the Economic Survey 2022-23, the government provided 100 percent tax credit for IT startups. The startups registered with Pakistan Software Export Board (PSEB) are allowed 100 percent tax credit including minimum, alternate corporate tax and final taxes for three years.

The software houses in Pakistan give great importance to ensuring high-quality standards and meeting the international requirements. Many companies have earned certifications like CMMI (Capability Maturity Model Integration) and ISO (International Organization for Standardization), which show that their products and services meet strict quality standards.

These certifications not only make the Pakistani software houses more trustworthy but also give international clients confidence in choosing Pakistan as their preferred outsourcing destination. According to the Ministry of Information Technology and Telecommunication, PSEB is assisting 18 companies this year with coveted international certifications such as ISO 27001, ISO 20001 and CMMI Level-2 and 3. Ten companies have received certifications, while the rest are in progress.

Credit: Independent News Pakistan-WealthPk