PSEB Develops Framework for Enhancing IT Exports

Pakistan Software Export Board (PSEB) has developed a comprehensive IT and ITeS export enhancement framework, providing a roadmap of initiatives and programs to be carried out on both demand side and supply side, enabling the sector to reach annual export remittances receipts of $15 billion in the next five years.

Under the framework, the cost of doing business would be rationalized to make Pakistan a preferred IT outsourcing destination, attracting potential investors, customers/partners, and retaining the existing ones.

Work would be done on Human resource development and capacity building to meet the growing demand for skilled IT & ITeS professionals and meet the skilled HR requirements to achieve the $15 billion mark.

Infrastructure development would be prioritized to provide sufficient IT-enabled workspace coupled with the nurturing ecosystem to boost IT exports, including the establishment of IT Parks, Software Technology Parks, Centers of Excellence, and Knowledge Parks. International marketing branding, promotion, and business development measures are the backbone of generating international demand to boost IT & ITeS exports and establish Pakistan as the preferred outsourcing destination in the world.

State-led strategic outreach to improve Pakistan’s geo-strategic foreign relations alignment to accelerate IT exports, particularly to countries in proximity and countries of strategic importance. These state-led measures will reduce dependency on a handful of countries accounting for the bulk of IT and ITeS export revenue.

The Ministry of Information Technology and Telecommunications has identified several constraints including inconsistency in policies, taxation issues, and banking hurdles which are hampering the country’s IT exports potential.

Official documents revealed that over the past five years, phenomenal upward growth of 178 percent in IT & ITeS exports has been realized at a compound annual growth rate (CAGR) of 30 percent, the highest growth rate in comparison to all other local industries in services and even higher than the textile sector which stands at 148 percent.

However, a number of constraints and hurdles are hindering the growth of IT and ITeS exports. Inconsistency of policies has eroded the confidence of local and international investors, customers, and partners not to mention the trade bodies and government entities. Frequent changes in taxation policy on IT & ITeS export proceeds are one such example.