Pakistan’s IT Sector Sees Slow Growth, Below Expectations In FY2023: Report

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Updated: July 22, 2023 5:30 PM IS

Islamabad (Pakistan), July 22 (ANI): Pakistan‘s IT sector is experiencing slow growth, below expectations in fiscal 2023, according to Dawn.
dawn is a Pakistani Newspaper in English.
According to recent reports, Pakistan‘s IT exports it reached just US$2.6 billion, representing a 15% increase over the previous year.
Despite experiencing slight growth, the rate has slowed to its lowest level since fiscal 2016, and export inflows were flat compared to the previous year.
Topline Securities ICT Analyst Nasheed Malik in his research report highlighted that the growth rate of IT exports in fiscal year 2023 falls significantly short of the compound annual growth rates (CAGRs) of the past five, ten, and 15 years, which stood at 19.5 percent, 12.5 percent, and 16.3 percent, respectively.

Two key factors contributing to this slowdown are the withholding of income abroad by technology companies and the global economic slowdown, which has impacted IT exportsAlba reported.
As a result, experts in the field are voicing their concerns and suggestions to boost the IT sector forward.
Speaking to The Express Tribune, Kapeel Kumar, an ICT expert, said: “Pakistan can do better in terms of IT exports.”
He also highlighted the importance of attracting more foreign investment, developing skilled IT professionals and promoting the IT sector to international buyers.
To address the problem of declining foreign investment in the IT sectorexperts have proposed that the government offer tax breaks and incentives, the report said, adding that collaborations with universities and colleges to develop more IT training programs would also help train qualified IT professionals for the industry.
Additionally, promote IT sector at international fairs and conferences and facilitating connections between PakistanIT companies and potential buyers through chambers of commerce and trade organizations could improve global visibility, Kumar suggested, Dawn reported. (ME TOO)