Coordinator to Minister of State and Federal Tax Ombudsman Meher Kashif Younis here on Sunday said the global Information Technology (IT) services market is expected to grow from $1.3 trillion in 2022 to $2.1 trillion by 2025 and Pakistan must prioritise digital transformation of businesses to meet the global challenges.
Speaking at a seminar on “Impact of Digital Transformation of Businesses” organized under the aegis of Gold Ring Economic Forum, a strategic think tank, he said that digital transformation and IT export were vital for economic growth and competitiveness in the 21st century, said a news release.
He said that Pakistan had made significant progress in this sector in recent years. By predicting future trends, we can anticipate that there will be more opportunities and challenges for Pakistani businesses in this sector in the coming years, he added.
Meher Kashif said that the digital economy was growing rapidly and it was expected to contribute significantly to the country’s economic growth in the coming years. Pakistan is a developing country with a population of 240 million, 65 percent of whom are between 15 and 40 years old. It has a growing internet penetration rate of 23 percent year-on-year, and a vibrant mobile market with more than 170 million subscribers, he expressed.
He said some of the key technologies that hold transformation potential for Pakistani businesses include mobile internet, cloud computing, big data, AI, fintech, internet of things and remote sensing, advanced robotics, and additive manufacturing.
These technologies, he said can enable businesses to improve their productivity, quality, agility, customer experience, and market reach, he remarked.
He said Pakistan Software Houses Association (P@SHA), the IT export revenue of Pakistani businesses has reached $3.5 billion in 2022, up from $2.5 billion in 2020.
He said that there was a need for a conducive regulatory environment that supports innovation, protects intellectual property rights, ensures data security and privacy, facilitates online payments and transactions, and promotes cross-border trade and collaboration.
Meher Kashif Younis, who is also Chairman Kyrgyzstan Trade House, said the digitalization can help Pakistan increase its GDP per capita by 3-5 percent over the next three years and will create new opportunities for businesses to sell their products and services online.
He said businesses that have invested in digital transformation have seen a higher rate of growth in their IT exports than those that have not.
Businesses that have implemented digital technologies such as cloud computing, big data, and AI have seen an average increase of 30 percent in their IT exports in the past year, compared to 20 percent for businesses that have not implemented these technologies, he added.
