Pakistan’s IT Economy: Potential for a Brighter Future

 
 
 
Posted by: IIPS Category: Daily Insights Tags: Comments: 0

Digital technologies are growing as a significantly critical determinant of economic growth, national security, and international competitiveness. The IT economy has a deep influence on the world’s trajectory and the social betterment of local citizens. It works on everything from resource allocation to income distribution and growth. Researchers estimate that the digital economy is worth $11.5 trillion globally, equivalent to 15.5 per cent of global GDP. Furthermore, it has grown two and a half times faster than global GDP over the past 15 years.

Pakistan’s IT sector has had a rough couple of years, but recently, the industry’s overall growth in the past 10 to 15 years has been prominent. Despite the recent hiccups, an immense increase in IT and IT-enabled (ITeS) remittances has been seen.  According to the Economic Survey of Pakistan (2020-2021), the compound annual growth rate for IT and related services reached 18.85 per cent, the highest growth rate of any industry in the region. Moreover, micro-enterprises, independent consultants and freelancers contributed around $500 million to IT and ITeS exports, while the annual domestic revenue exceeded $1 billion.

Pakistan’s IT sector has great potential to lead its economy toward a growth trajectory path. The country’s IT sector carries tremendous potential and still needs to be exploited more. Google recognised Pakistan as far back as 2018 for rapidly turning into a digital-first country. Currently, Pakistan has the fourth-largest growing freelancer’s market globally and is known for software development, business process, and freelancing of IT-related services. 

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IMARAT Institute of Policy Studies

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