Digital technologies will contribute significantly to Pakistan’s digital exports, with an additional $6.6 billion (PKR 1.8 trillion) in annual export value in 2030 gained by exports of mobile apps, online video services, cross-border digital ads, cross-border e-commerce, and other digital services, according to a report Economic Impact Report: Agay Barho: Empowering Pakistan’s Digital Economy.
Digital technologies are poised to play an even greater role in Pakistan’s economic growth in years to come, particularly with the rising significance of Artificial Intelligence (AI). To make sense of such a vast and fast-changing landscape, the report takes a deeper dive into the economic potential of digital exports and digital skilling for Pakistan.
The government is looking to boost Pakistan’s exports to drive sustained economic growth and overcome macroeconomic challenges, such as balance of payments concerns, inflation, and rising unemployment. Furthermore, this number is expected to increase significantly if Pakistan implements enabling policies. This boost in digital exports will mainly be driven by businesses using digital technologies to:
- Create new exportable digital solutions;
- Reduce the cost of accessing overseas markets;
- Drive more efficiencies in the export processes
Future Outlook
To grow the country’s digital exports, Pakistan needs a digitally skilled workforce. With 80 percent of IT graduates lacking relevant industry skills, Pakistan has a wide digital skills gap that must be addressed immediately. Rs. 2.8 trillion of annual GDP in Pakistan can be added in 2030 by narrowing the digital skills gap through digital skills training and greater adoption of education technologies.
Growth is also expected in online video services — specifically, what Pakistani creators earn through overseas audiences — with a 10 percent compound annual growth rate (CAGR) from 2023 to 2030. On the other hand, mobile apps and cross-border e-commerce are expected to grow at 8 percent and 7 percent annually over the same period, respectively. Tapping the strength of a large and relatively young workforce, where about two-thirds of the total population are under 30 years of age and are eager to equip themselves with the right skills, this could be achieved by making digital skills training and upskilling accessible (both online and offline).
Further leveraging education technologies to personalize learning and enable access to training on demand can enhance the learning experience and facilitate the acquisition of new skills by workers. Building a future-proof economy will mean tapping the key opportunities of digital exports and digital upskilling, and Google is helping to connect Pakistan to these growth opportunities.
Pakistan produces over 25,000 IT graduates annually and is home to over 300,000 English-speaking IT professionals, with the country being the third-largest freelance market globally. However, with the rapidly changing digital landscape, continuous investment in digital skills training and education is vital to remain competitive.
Digital skills training and education technologies (i.e., online training programs and personalized learning) are key to creating more job opportunities and decent employment for Pakistanis Google is helping to accelerate Pakistan’s digital future with AI-powered products and solutions Equipping Pakistan’s workforce with digital skills.
Currently, a significant skills gap exists between the digital skills employers seek and those possessed by Pakistan’s workforce. This mismatch is evident in the IT sector, where employers find that over 80 percent of IT graduates lack the necessary technical skills, according to a 2021 survey by the Pakistan Software Houses Association for IT and ITES (P@ SHA).
The educational curriculum needs to adapt to meet the evolving demands of the digital economy, especially with the rise of AI. With the emergence of AI tools focused on productivity, this number is likely to increase significantly. Pakistan’s young workforce recognizes the importance of digital skills, with 72 percent considering basic digital skills as crucial for employment. Advanced digital skills, like data analysis and visualization (49 percent), digital marketing and e-commerce (48 percent), and IT support (40 percent), are also viewed as imperative and are highly desired.
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