ISLAMABAD: Pakistan’s digital economy thrives despite Covid-19 setback, WealthPK reported.
Pakistan’s Information Technology (IT) Industry has a huge potential to boost exports if infrastructure is further developed to support local tech ecosystem.
IT and Telecommunication Minister Syed Aminul Haque said that IT exports would exceed the target of $3.5 billion by December 2022 and it would be $8 billion in 2023. The IT industry can contribute 19 percent to GDP by 2030.
According to a report of AlphaBeta, a global rating agency, Pakistan’s technology services industry can achieve $60 billion in annual revenue by 2030, if the country develops infrastructure to support local tech ecosystem and export.
Till now, 26 companies have been issued Mobile Device Management (MDM) Authorisation, enabling them to manufacture mobile devices in Pakistan.
The companies include renowned brands like Itel, Samsung, Nokia, Oppo, TECNO, Infinix, Vgotel, and QMobile etc.
Pakistan has become an exporter of 4G smartphones by sending first-ever shipment tagged ‘Manufactured in Pakistan’ to the United Arab Emirates.
The first consignment of 5,500 mobile sets of 4G smartphones manufactured by Inovi Telecom was exported to the UAE. This marks the beginning era of high value-added exports from Pakistan.
The establishment of 26 manufacturing plants has brought in an investment of over $126 million and created over 10,000 jobs in a span of 10 months.
The government has introduced a mobile manufacturing policy to encourage and attract more manufacturers to establish their units in Pakistan. In light of the policy, the PTA issued Mobile Device Manufacturing Regulations in 2021.
Favorable government policies have helped achieve the milestone of transforming Pakistan from a net mobile phone importer to an exporting country. As per the IT Ministry, Pakistan exports saw the biggest growth in the field of IT, with annual IT exports exceeding $2b, constituting up to 47 percent of the growth rate, WealthPK reported.
Last year was a disaster for several businesses and economies around the world owing to the pandemic. However, more money flowed into Pakistan’s nascent technology sector during 2021 than in the previous six years combined, with investors from the US, Singapore and the UAE for the tech sector after realising its potential for exports.
Fraser Thompson, Managing Director AlphaBeta, said Pakistan is home to more than 300,000 IT professionals, and produces over 25,000 IT graduates annually, and has nurtured over 700 tech start-ups since 2010. He added that technology exports have grown 15 percent per year since 2020 and are expected to reach $3.5 billion in 2022. Pakistan’s online population has grown rapidly and the internet penetration rate is reaching 54 percent in 2021.
The report identified three main pillars of action Pakistan could take to reach the projected growth opportunity, which include developing infrastructure to support the local tech ecosystem, continuing to create a conducive environment for IT export, and promoting innovation and digital skills in the country. Researchers have identified eight key technologies that hold transformative potential for businesses and workers and can create significant economic value for Pakistan.
These include mobile internet, cloud computing, big data, artificial intelligence (AI), fintech, Internet of Things (IoT) and remote sensing, advanced robotics, and additive manufacturing.
The export of smartphones manufactured in Pakistan is accelerating and the uptrend is expected to steer job creation and decrease trade deficit.
Farhan Qureshi, the regional head for Google in South Asia, said despite setbacks caused by the pandemic, the future for Pakistan’s digital economy is bright. However, the local manufacturers of mobile phone sets have stressed the need for an export supportive policy, allowing Pakistan to beat competitors in the Middle East region. -INP
