Pakistan IT exports on road to growth recovery

PAKISTAN EXPORTS of Information Technology and IT-enabled services once again are firm on the track of growth recovery after witnessing a tough time of slump in the scenario of global economic meltdown. The country’s IT companies have started showing its growth with modest pace with the recoveries of developed economies particularly United States and European

Union states.As per State Bank of Pakistan statistics, the exports of IT and IT-enabled services have reached US $122.6 million in July-December 2010 as compared with US$ 113.5 million worth foreign exchanged earned through exports of this sector. Pakistan exports of IT and It-enabled services marked the all-time high exports record in the second quarter of current fiscal year 2010-11 (Oct-Dec), standing at US $56.926 million.Exporters of IT services have forecast that IT and IT-enabled services exports are likely to cross US $ 200 million by the end of the fiscal year as number IT firms have singed large-scale contracts with global companies in USA and UK.The exports figures of IT industry stood at US $187.937 million in the last fiscal year 2009-10 whereas the exports stood at US$ 183.821 million and US $154.020 in 2008-09, 2007-08 respectively, showing constant contraction in growth over the last couple of years.The figures of the central bank are based on the remitted amount in the country whereas World Trade Organization (WTO) prescribed formula evaluates four times higher exports value. Hence, the IT industry exports reached US $490.4 million.Therefore, the value will be doubled to US $2 billion by the end of current fiscal year if exporters’ claims of constant growth in IT exports are proved right.Experts InsightsPakistan’s IT exports have tremendous potential to explore its share in the global markets with the exceptional expertise and low cost services and products, Ashraf Kapdia Managing Director System Limited said.Pakistan computer software developing companies are fetching handsome exports orders in USA markets with the recoveries of its financial crippled sectors for last couple of years, he said. “But Pakistani companies though having exceptional skills and creativity are very limited as against Indians and Chinese.”There are a lot of opportunities for Pakistani IT firms to pitch big companies in US markets to establish themselves again however they need to diversify their services in different fields and applications, he added.Since the fiscal year 2008-09, the growth of IT exports contracted after developed economies faced severe credit crunch and bankruptcy of their private sectors. Pakistani companies including its rivals Indian and Chinese suffered financial losses too and many of them faced bankruptcy and complete closure of business.Although very few IT firms got survived mainly because of their engagement with state departments or with strong companies whereas majority of them moved to country and explored local and Middle East markets, IT experts said.Pakistani companies have shown different expertise in software programming including gaming and animation, database and business applications. Besides, Business Processing Outsources (BPO) companies provide different financial, legal and marketing solutions have a significant share in IT industry.Since 2010-11, the IT exports witnessed a slow come back in the US and EU markets as Pakistan IT companies have strengthened their reputation of country after winning awards in the global competitions.Global RecognitionLast year at International Asia Pacific ICT Awards (APICTA) held in Malaysia, P@SHA (Pakistan Software Houses Association for IT & ITES) delegation picked up 7 Merit Awards (the APICTA Silver equivalent). These included Merit Awards in Security Applications, E-Inclusion & E-Community, Financial Applications, Communications, E-Government and E-Health categories.Recently, Pakistani Gaming Firm Mindstrom Studios has developed official game of World Cup Cricket 2011.But this not at all, Pakistan computer software and consultancy firms also won accolades at regional and national level. 10 IT companies out of 25 Pakistan firms were declared amongst the Fast Growing Entities by AllWorld Network, a business research and rating agency.Pakistani companies have made these achievements at international level that will be expected to lead them towards a new peak of their success of businesses in future.President P@SHA, Jehan Ara said the Pakistani IT companies have shown their strong potential at global platforms and penetrating in the international market significantly without any government support. She added that Pakistan’s exports will once again pick up with accelerated pace as the number of IT firms and freelance workers have been increasing with creative skills over a period of time.Pakistan’s government should play a vital role to develop the IT sector, which has tremendous level of success to grow to increase the foreign exchange reserves of the country. The government should facilitate industry through establishment of IT Parks and issuance of funds to ensure participation of IT firms and professionals in international exhibition and platforms, she concluded.

http://www.technologytimes.pk/2011/06/04/pakistan-it-exports-on-road-to-growth-recovery/