Finalized IT Policy Envisions $6 Billion in IT Exports by 2020: Ministry

The Ministry of Information Technology and Telecommunication has finalized draft of National IT Policy 2016, envisaging software and telecom enabled services exports at $6 billion by 2020.

Some of the key features of the draft National IT policy are sectoral digitization, big data, data analytics, entrepreneurship, Internet of Things (IoT), e-Commerce, e-agriculture, software export. It is expected that the draft policy would be submitted to Economic Coordination Committee for its approval next month.

According to the draft policy there has been better growth in recent years of the overall IT industry in the country with IT firms earning nearly $560 million, mainly in software development and service outsourcing.

However it has been estimated that around 75 percent of earnings are held overseas to finance the cost of foreign offices and international marketing making the real figure in excess of $2.2 billion. IT exports have witnessed 41 percent increase during last one year.

According to the draft policy Pakistan has more than 2000 IT companies & calls centers and the number is growing every year. Pakistan has more than 300,000 English-speaking IT professionals with expertise in latest IT products and technologies.

More than 20,000 IT graduates and engineers are being produced every year. Pakistan has 14 Software Technology Parks at present with an area of one million square feet with more being planned for future. Pakistan ’s IT exports have grown by more than 20 times over the last decade to nearly $2.2 billion at present.

Freelancing revenue is another $(90-100) million per year, domestic revenue is roughly around Rs 30 billion or $300 million and the market of Cellular Mobile Companies is huge with total imports of Rs 73.224 billion for the fiscal year 2014-15. All these reflect a promising IT landscape in Pakistan .

The policy is targeting to enhance the exports of software and IT/IT enabled services to create jobs and contribute towards the government’s efforts to increase overall exports and IT remittances. The policy mainly concentrates on emerging areas of mobile applications, responsive web applications, and animation. It further focusing on moving up the global IT value chain whilst also exploring new areas where low end business process outsourcing jobs can be created.

The policy envisages attracting multinational global companies to utilize Pakistani manpower for back end services by providing appropriate incentives in a transparent manner, utilize the Pakistani Diaspora in the US and European markets to plug young entrepreneurs into the global IT value chain.

The policy is aimed at providing enabling environment for companies to set up venture capital and other financing mechanisms to start-up companies. Work with relevant stakeholders on continual basis like FBR, Finance Division and provincial revenue authorities for better tax treatment of IT industry.

Ministry spokesperson said that given the growing trends of information technology, it has become imperative to reformulate the National IT policy to take into account the transformative fundamentals of technology and its eco-system centered on digitization.

MoIT has successfully conducted a final “Stakeholders Consultation” to review the draft National IT Policy on Thursday.

Initial draft was prepared with the support and coordination of IT Industry, PASHA, Academia, Civil Society, relevant government departments in 2015. The draft document was further deliberated in multiple focused group sessions with researchers from prime academic institutions, high ranking IT experts, civil society, experienced government decision makers, digital & Internet service providers as well as other associated stakeholders.