Pakistan’s IT exports grow by 47% for year 2020-2021

Pakistan's IT exports grow by 47% for year 2020-2021

Pakistan’s information technology exports rose by 47 percent from July to May in fiscal year 2020-21, hitting $1.9 billion, according to data released by the State Bank of Pakistan.

According to central bank data, IT exports increased 59 percent year over year to $200 million in May. Exports totaled $126 million in May of the prior year.

Telecommunications, computer, and information services are among the services exported.

Service exports reached $5.3 billion in fiscal year 2020-21, up from $5 billion in the previous fiscal year’s similar period, according to SBP data.

The growth in the country’s technology product and service exports was attributed to the coronavirus-induced surge in freelancing activity.

According to The News, the bulk of the growth in information and communication technology services was due to software and hardware-related services.

For example, Pakistani freelancers are already well-versed in the global gig economy. In fact, Pakistan boasts the world’s third-largest number of freelancers working on the most popular online contracting platforms.

This allowed the country to take advantage of the rising global demand for ICT services at the time.

The ministry of commerce allowed more than 30 exporters to register on, the world’s biggest online marketplace, on a trial basis. This may offer Pakistan with a new method to increase exports while also providing new employment opportunities.

The SBP’s measures also led in a rise in IT services exports.

The central bank allowed exporters of goods and services, especially IT-based services, to retain a portion of their export earnings in special foreign currency accounts.

The SBP has broadened the usage of money kept in special foreign currency accounts. For a number of new and current reasons, banks are now allowed to make payments from accounts. However, the percentage of export profits that exporters may keep in these accounts has not altered.

According to the central bank, the coronavirus epidemic “significantly accelerated” the pace of digital transformation across the world.

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