A technological tool to unlock Pakistan’s growth

Islamabad:With a growing youth population, increasing internet penetration and thriving startup ecosystem, Pakistan is poised to become a significant player in digital economy and achieve the goal of national growth and prosperity.

However, experts have underlined the importance of strengthening digital infrastructure to exploit its true potential and lead the country towards sustainable development. The Information Technology (IT) is one of the top sectors to lead digital economy.

According to Economic Survey of Pakistan (2023-24), the IT industry currently generates an annual export of around US$ 2.6 billion and to achieve the ambitious target of yearly exports of US$ 15 billion in next five years, at least 200,000 proficient and specialized IT professionals are necessary.

“We need to strengthen IT infrastructure and produce skilled manpower to take full advantage of the potential existing in digital economy,” said Chairman Pakistan Information Technology Industry Association (PSHA), Muhammad Zohaib Khan.

Highlighting importance of building the sector on modern lines to meet international standards, he also underscored the importance of improving digital infrastructure and increasing internet connectivity.

The present coalition government is paying special attention towards information technology (IT) and had earmarked over Rs79 billion for it in the budget 2024-25, the highest allocation in country’s history.

The sector is expected to touch $3.5 billion exports this year and the government is planning to enhance its exports to US $7 billion in years to come, asserted Finance Minister, Senator Muhammad Aurangzeb while highlighting the importance of this sector in his budget speech.

Over Rs19 billion would be utilized for establishing IT Park in Karachi and a Technology Park in Islamabad. In addition Rs two billion would be spent for Pakistan Software Export Board (PSEB) and Rs20 billion are for Digital Infrastructure Information, the minister added. There is no denying the fact that during past decade, Pakistan has witnessed a significant increase in internet penetration, with internet users growing to 111.0 million at the start of 2024, stated Data Portal, a website publishing Global Digital reports series.

It says Pakistan was home to 71.70 million social media users in January 2024, equating to 29.5 percent of the total population. A total of 188.9 million cellular mobile connections were active in Pakistan in early 2024, with this figure equivalent to 77.8 percent of the total population.

President Islamabad Chamber of Commerce and Industry (ICCI), Ahsan Zafar Bakhtawri said that IT exports reached more or less to around US$ 2.5 billion during fiscal year 2023-24, which he said was likely to reach US$ five billion in next two years.

The digital economy is currently growing and many IT companies are opening in the country and introducing themselves at international level, Ahsan Zafar remarked and highlighted the importance of promoting the culture of developing digital industry like other regional countries.

However, he underlined the need to fully employing this potential by establishing global linkages as recommended by various experts and said, digital economy could be further strengthened by linking it with the global supply value chain.

Meanwhile, Pakistan’s startup ecosystem has also been gaining momentum in recent years, with numerous incubators, accelerators and co-working spaces emerging across major cities like Karachi, Lahore and Islamabad.

In addition Pakistan’s e-commerce market is growing rapidly, driven by increasing online shopping, digital payments and a rise in the number of online marketplaces while digital payment systems have also expanded, providing convenient payment solutions for online transactions.

Many startups of IT companies and the youth need support of the government to strengthen Small and Medium Enterprises (SMEs) sector and boost country’s digital economy, Ahsan Zafar said.

Likewise, Pakistan has a significant pool of skilled professionals in areas like software development, graphic design and content writing. Freelance platforms have enabled Pakistani freelancers to access global markets, providing services to clients worldwide.

This has not only generated foreign exchange but also created employment opportunities for thousands of professionals. Therefore, to fully harness the potential of digital economy, Pakistan needs to invest in developing digital skills and education.

“We have lot of potential in this sector as Pakistani IT experts are less to none worldwide. If provided required expertise and opportunities to excel, they can earn lot of valuable foreign exchange for the country,” said Nawaal Chaudhry, a content writer.

Even many of our fresh graduates who are not directly computer or information technology qualified are amply performing in this arena. The Pakistani government has recognized the importance of digital economy and has launched initiatives like Digital Pakistan program, aimed at promoting the development of digital economy, improving digital infrastructure and enhancing digital skills.

Pakistan’s digital economy has immense potential for growth, innovation and job creation. With a large youth population, increasing internet penetration and a thriving startup ecosystem, Pakistan can leverage digital technologies to drive economic growth and prosperity.

As the country moves forward, the government’s support and initiatives, combined with the country’s resilience and adaptability will help unlock Pakistan’s potential in digital economy.