Pakistan’s information technology (IT) industry is rapidly evolving, registering a growth rate of 24 percent in the fiscal year 2023-24. The information technology sector is poised to be one of the largest industries in Pakistan in the coming years with the potential of taking the South Asian nation out of the financial problems.
According to official data, Pakistan’s information technology exports in the financial year 2022-23 amounted to $2.596 billion, which increased to $3.223 billion in the financial year 2023-24. On a year-on-year basis, the export remittances increased by 32 percent this year. The sector’s export potential has been estimated at $15 billion, but banking issues, inconsistent policies, and other hurdles have prevented it from growing to its capabilities.
However, the recent coordination between the government agencies enabled IT exports to grow to $3.2 billion during the last fiscal year. According to the Economic Survey of Pakistan, the country needs to prepare at least 200,000 specialized professionals during the next five years to achieve its target of annual exports of $15 billion. On Saturday, Prime Minister Shehbaz Sharif visited the under-construction site of the Islamabad Technology Park, the largest one in the country, as per the official record.
The project was launched in 2022, with the contract for the venture going to a South Korean company. It is worth noting here that South Korea is providing $70 million in soft loans for the project. During his visit to the site, the prime minister applauded the speed of the project and urged the management to complete it by September or October, after which different companies would set up 120 offices there.
He highlighted that ever since he came to power, he had instituted a system of working round the clock. He said that he had issued instructions to teams to ensure work on development projects across 24 hours. Shehbaz Sharif said that an incubation center operating in the facility will provide legal, financial and marketing support to startups. Moreover, he said that the facility will lead to the creation of 10,000 jobs.
Noting the potential of the IT sector, he said that the Islamabad Technology Park would contribute $70 million to Pakistan’s total IT exports every year. It is worth mentioning here that the government has been trying to bridge the gap between academia and industries and this initiative is also a move in that direction. The technology park will bring together stakeholders, including foreign entities, from these sectors who will be able to collaborate under one roof and synergize for the country’s progress.
‘Emerging Technology Centers’
Understanding the significance of riding the wave of emerging technologies, the government has decided to launch a landmark project to propel Pakistan’s digital and technological growth. According to the state-run news service, the Ministry of Federal Education and Professional Training will set up Emerging Technology Centers in 350 schools across northern parts of the country. These centers will give schoolchildren access to the latest technological innovations, allowing them to acquire relevant skills.
These centers will help prepare these students for the evolving digital landscape of Pakistan by training them in virtual reality, artificial intelligence, and data analytics. These Emerging Technology Centers will have two facilities, with the first one being allocated for dual usage. Class A facilities will also be used as co-working spaces by technology entrepreneurs during off hours. Class B facilities will be dedicated to educating 0.4 million students. These skills will be taught by 175 professionals, who will be hired through a competitive process.