The ICT export remittances sector has been pivotal to Pakistan’s economic landscape, accounting for more than 10.5% of total exports in FY2023-24. The rapid expansion of the IT and IT-enabled Services (ITeS) sector has resulted in marked increases in export revenues and a considerable trade surplus.
Shaza Fatima Khawaja, the Minister of State for IT, informed the Senate that ICT export remittances reached a historic peak of $3.223 billion, constituting 41.3% of the country’s total services exports. This growth underscores the sector’s ascending importance within the national economy.
Moreover, the IT and ITeS sector produced a trade surplus of $2.827 billion, which accounts for 87.71% of the overall ICT remittances. This represents a 22.31% rise from last fiscal year’s surplus of $2.297 billion. In stark contrast, the broader services sector faced a trade deficit of $2.313 billion during the same timeframe.
Factors Contributing to ICT Export Growth
The Minister attributed the exceptional growth of the sector to her government’s proactive policies, global marketing strategies, and investments aimed at enhancing the skilled workforce. She emphasized that the IT industry has maintained a compound annual growth rate (CAGR) exceeding 22% over the last five years, establishing it as one of the most rapidly expanding sectors in Pakistan’s service industry.
According to her, the momentum in ICT export remittances has carried into FY2024-25. Between July and December 2024, export earnings surged by 28% year-over-year, totaling $1.86 billion, compared to $1.45 billion during the same period last year.
In December 2024 alone, remittances amounted to $348 million, marking a 14.8% increase from December 2023 and a 12.2% month-on-month rise from November 2024, when remittances stood at $310 million.
The table below provides a snapshot of the annual progression in ICT export remittances:
| Fiscal Year | ICT Export Remittances | Year-on-Year Growth |
|---|---|---|
| FY2022-23 | $2.596 billion | – |
| FY2023-24 | $3.223 billion | +24.15% |
| FY2024-25* | $1.86 billion (H1) | +28% (H1 YoY) |
(Figures for FY25 reflect the period from July to December.)
Government Strategies for Sustained Growth
To uphold the rising trend of ICT export remittances, the Ministry of IT and Telecommunication (MoITT) has unveiled several strategic initiatives.
These efforts aim to bolster Pakistan’s IT presence in global markets, enhance human capital through comprehensive skill development programs, and invest in cutting-edge digital infrastructure, such as modern IT parks and improved broadband connectivity.
Furthermore, the government is fostering collaborations with global tech companies to draw foreign investment and elevate the industry’s international profile.
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