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Pakistan’s IT exports rise by 9% in November

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1 year ago

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  • IT exports surge to 12-month high to $259m in Nov. 
  • Surge is due to relaxation of permissible retention limit.
  • Computer services grow by 14% month-on-month.

KARACHI: Pakistan’s information technology (IT) exports surged by 9% month-on-month to $259 million in November, which is also the highest level in the past 12 months, The News reported on Friday. 

According to brokerage firm Topline Securities, the jump is driven by a relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), which allowed IT exporters to keep 50% of their foreign earnings in their specialised accounts, up from 35% previously.

A stable rupee also encouraged IT companies to repatriate their foreign income and deposit it in local accounts. Caretaker IT Minister Umar Saif said that IT companies had parked an estimated $1-2 billion outside of Pakistan, which could be brought back to boost the country’s foreign exchange reserves.

The IT export figure reflects the amount remitted back to Pakistan by technology companies, which provide services such as software development, web design, data processing, and call centres to clients worldwide.

Computer services, which accounted for 83% of the total IT exports in November 2023, grew by 14% month-on-month and 20% year-on-year, while telecom services, which made up 17%, declined by 11% month-on-month.

Other computer services, such as consulting, training, and maintenance, recorded the highest growth rate of 28% month-on-month, followed by the export of computer software, which increased by 14% month-on-month.

In the first five months of the fiscal year 2023-24 (July-November), IT exports rose by 6% year-on-year to $1.2 billion, representing 7.4% of the total exports of the country. Net IT exports, which deduct IT imports from IT exports, also increased by 11% month-on-month and 7% year-on-year to $226 million in November 2023.

On a trailing 12-month basis, net IT exports reached $2.4 billion, up by 10% year-on-year.

The IT sector is expected to benefit from the global and regional trends of increasing spending on software and IT services, as per a report by Gartner, a technology research and consulting firm.

Gartner projected that worldwide spending on software would grow by 13.8% and spending on IT services would increase by 10.4% in 2024.

MENA (Middle East and North Africa) software spending was forecast to record double-digit growth of 12.3% in 2024, followed by IT services spending growing at 11.1% next year, to accelerate digitalisation and automation in the region.

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In interbank trade, the Pakistani rupee beats the US dollar.

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7 days ago

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In the international exchange market, the US dollar has continued to weaken in relation to the Pakistani rupee.

The dollar fell to Rs278.10 from Rs278.17 at the beginning of interbank trading, according to currency dealers, a seven paisa loss.

In the meantime, there was a lot of turbulence in the stock market, but it recovered and moved into the positive zone. The KSE-100 index recovered momentum and reached 116,000 points after soaring 1,300 points.

Both currency and stock market swings, according to analysts, are a reflection of ongoing market adjustments and economic uncertainty.

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Business

Phase II of CPEC: China-Pakistan Partnership Enters a New Era

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The cornerstone of economic cooperation between the two brothers and all-weather friends is still the China-Pakistan Economic Corridor, the initiative’s flagship project.

In contrast to reports of a slowdown, recent events indicate a renewed vigour and strategic emphasis on pushing the second phase of CPEC, known as CPEC Phase-2, according to the Ministry of Planning, Development, and Special Initiatives.

According to the statement, this crucial stage seeks to reshape the foundation of bilateral ties via increased cooperation, cutting-edge technology transfer, and revolutionary socioeconomic initiatives.

Planning Minister Ahsan Iqbal is leading Pakistan’s participation in a number of high-profile gatherings in China, such as the 3rd Forum on China-Indian Ocean Region Development Cooperation in Kunming and the High-Level Seminar on CPEC-2 in Beijing.

His involvement demonstrates Pakistan’s commitment to reviving CPEC, resolving outstanding concerns, and developing a strong phase-2 roadmap that considers both countries’ long-term prosperity.

At the core of these interactions is China’s steadfast determination to turn CPEC into a strategic alliance that promotes development, progress, and connectivity.

Instead of being marginalised, CPEC is developing into a multifaceted framework with five main thematic corridors: the Opening-Up/Regional Connectivity Corridor, the Innovation Corridor, the Green Corridor, the Growth Corridor, and the Livelihood-Enhancing Corridor.

With the help of projects like these, the two countries will fortify their partnership, and CPEC phase-2 will become a model of global economic integration and collaboration that benefits not just China and Pakistan but the entire region.

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Business

The inflation rate in Pakistan dropped to its lowest level.

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On December 2, core inflation as determined by the Consumer Price Index (CPI) significantly slowed, falling to 4.9% in November 2024 from 7.2 percent in October 2024.

The CPI-based inflation rate for the same month last year (November 2023) was 29.2%, according to PBS data.

Compared to a 1.2% gain in the prior month, it increased by 0.5% month over month in November 2024.

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