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State Bank: Pakistan IT Exports Surge Past Billion Dollars in 2018

Pakistan's information technology exports have bucked the nation's declining exports trend with double digit growth to reach $1,065 million in fiscal year 2018, according to the State Bank of Pakistan.  It is generally believed that Pakistan's central bank underestimates technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.

Source: State Bank of Pakistan

Pakistan IT exports surged 13.4% to $1.06 billion in fiscal year 2018 from $939 million in fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in fiscal year 2017.

Source: State Bank of Pakistan

About $320 million of IT exports revenue in fiscal 2018 came from software exports while the rest was made up of services such as consulting, telecom and call centers.

Online Labour Index top 20 worker home countries, 1-6 July 2017

Freelancers in Pakistan are benefiting from the growing access to broadband connections which are now being used by over 50 million Pakistanis across the country. Pakistan is ranked 4th in the world by the freelancing industry report.  The country has rapidly increasing human capital of technologists.

Growth in IT exports is a good sign for Pakistan's export diversification beyond commodities such as textiles and food. In addition, air forces of about a dozen developing nations are buying and deploying Pakistani made aircrafts. The reasons for their choice of Pakistan manufactured airplanes range from lower cost to ease of acquisition, maintenance and training.

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Views: 73

Comment by Riaz Haq on October 7, 2018 at 7:55am

#Pakistan undergoing transformation towards #digital domains: experts. #technology https://tribune.com.pk/story/1820035/1-pakistan-undergoing-transfor...

Experts stressed the fact that Pakistan is currently going through a rapid transformation towards digital and technological domains which requires identifying current problems, upcoming challenges and proposing solutions.

These views were expressed at a panel discussion organised by PlanX Technology Accelerator, a project by the Punjab information Technology Board (PITB) on Saturday. The theme of the session was ‘The Future of Incubators and Accelerators in Pakistan’.

Panelists included PITB Entrepreneurship Director Atif Mumtaz, NSPIRE Technology Incubator Head Ayub Ghauri and UET Technology Incubator Programme Manager Farhan Riaz who proposed solutions to the challenges being faced by stakeholders.

Experts discussed the situation of entrepreneurs and relevant stakeholders including the future of incubators and accelerators in Pakistan.

PITB Entrepreneurship Director Atif Mumtaz, who is spearheading the board’s entrepreneurial projects, highlighted the past achievements of the board’s entrepreneurship wing.

He stated that Plan9 and Plan X have become common knowledge among university and college students. “Due to the fact that there is a lack of jobs in the market, students have started coming up with their own business ideas in the form of start-ups,” he said.

This is a big achievement and has helped to tackle unemployment in the country. It is encouraging to see investors supporting such ideas and playing a key role in promoting entrepreneurial activity, he added.

NSPIRE Technology Incubator Head Ayub Ghauri maintained that in addition with opening more institutions such as incubators and accelerators, it is also important for start-ups to think outside of the box particularly during the development stage.

“This out of the box thinking can help identify sustainable business ideas which can function in the long run,” he added.

Panelist also gave examples of successful start-ups which have gone through incubators and accelerators and highlighted the importance of learning from failures.

Mughees Tahir, from PlanX, highlighted that entrepreneurs were likeminded people with similar goals and even similar problems; Pakistani start-ups should help each other in order to grow.

The panel discussion was followed by a question and answer session from the audience.

Comment by Riaz Haq on October 16, 2018 at 9:24am

Foreign #remittances sent by overseas #Pakistanis increase by $629 million, up 13% to $5.419 billion in first three months of current fiscal year https://nation.com.pk/11-Oct-2018/foreign-remittances-sent-by-overs...

Foreign remittances sent by overseas Pakistanis have increased by 13 per cent, 5.4 billion US dollars, in the first quarter of the 2018-2019 fiscal year (July 1-June 30), in comparison to the previous year, according to figures released by the State Bank of Pakistan (SBP) on Thursday.

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The SBP reported that overseas Pakistani workers remitted 5.419 billion dollars during the period from July 2017 to September 2018, up 629 million dollars.

Inflows from Saudi Arabia were the largest source of remittances. They amounted to 1.263 billion dollars in the first three months of the current fiscal year, up 2.9 percent as compared to 1.228 billion dollars in the corresponding period of last fiscal year.

The highest rise in remittances was seen from Britain, which climbed 32.3 percent to 828.4 million dollars against 626 million dollars in the same period of last fiscal year.

During the period under review, inflows from the United States rose to 759.4 million dollars, depicting an increase of 18 percent. Among the three major corridors of home remittances, Saudi Arabia is still the largest contributor to remittances inflows into Pakistan, despite lower growth compared to Britain and the United States.

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Local economists believed that the rise in remittances in the first three months of current fiscal year is a positive sign for the incumbent government as it can play a key role in reducing the country's current account deficit.

Comment by Riaz Haq on October 23, 2018 at 4:57pm

The following export product groups represent the highest dollar value in Pakistani global shipments during 2017. Also shown is the percentage share each export category represents in terms of overall exports from Pakistan.

http://www.worldstopexports.com/pakistans-top-10-exports/

Miscellaneous textiles, worn clothing: US$4 billion (18.1% of total exports)
Cotton: $3.5 billion (16%)
Knit or crochet clothing, accessories: $2.5 billion (11.5%)
Clothing, accessories (not knit or crochet): $2.5 billion (11.3%)
Cereals: $1.8 billion (8%)
Leather/animal gut articles: $632 million (2.9%)
Sugar, sugar confectionery: $511.9 million (2.3%)
Optical, technical, medical apparatus: $410.6 million (1.9%)
Fish: $406.9 million (1.9%)
Salt, sulphur, stone, cement: $385.5 million (1.8%)

Comment by Riaz Haq on October 23, 2018 at 5:06pm
This is what I tweeted this morning after watching Imran Khan's speech  ( https://youtu.be/d-f_KEtSKC0 )  at Davos in the Desert:
Disappointed in #ImranKhan's #Pakistan pitch at #DavosInTheDesert. #Saudis are big investors in #SiliconValley and #ImranKhan failed to mention Pakistan's #tech potential. It took an #Indian questioner in the audience to point to #Pakistan's #IT potential http://www.riazhaq.com/2018/08/state-bank-pakistan-it-exports-surge...
I think Imran Khan needs a tailored pitch for investors that focuses on opportunities offered by Pakistan, not its problems. 
And the opportunities should be explained in a way to attract investments in sectors that export higher value manufactured products, not commodities. 
The IT exports are only a billion dollars now but these are growing in double digits and already account for the third largest export category after textiles and food items. 
IT exports are also the fastest growing segment of Pakistan's exports.  And the potential for IT exports goes far beyond the BPO business. 
Pakistan is already home to two tech made-in-Pakistan tech unicorns: Affiniti and Careem. Here's a blog post I wrote about it:
Imran's investment pitch needs to be very different from his political campaign speeches designed for domestic audiences. 
I think Imran can be a very good and effective pitchman for Pakistan if he’s better briefed and prepared for such conferences. He’s personally very charismatic 

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