Computer exports soar 58% in March 2021
Similar to the textile sector, Covid-19 has proven to be a blessing in disguise for Pakistan’s technology exports, as IT exports soared 58% in March 2021 compared to the corresponding period last year. .
Information technology (IT) exports reached $ 213 million last month, according to a report from Arif Habib Limited.
In addition, technology products worth $ 1.512 billion were exported in the first nine months of fiscal year 2020-2021, contributing 35% to overall services exports and reporting a surge. by 44% year over year, the data revealed.
“The government should focus on the tech sector because it has huge potential for exports,” Tahir Abbas, head of research at Arif Habib Limited, said in comments to The Express Tribune.
Insight Securities analyst Muhammad Ahmed attributed the increase in exports to the Covid-induced surge in freelance writing business.
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According to him, the fair value of the rupee against the US dollar has been a determining factor in the surge in exports, along with the divergence of entries through legal channels following the suspension of flights over the globe.
The government’s efforts to document the IT sector by offering a tax credit of around 80% of export earnings have helped boost technology exports, he said.
Systems Limited, one of the largest exporters of IT products and services listed on the Pakistan Stock Exchange (PSX), recently reported record annual sales of Rs 10 billion and profit of Rs 2.1 billion. rupees.
“The company exceeded our revenue estimates by 2% and profit by 8%, which is mainly due to better management of receivables,” said Ahmed.
Systems Limited maintained its growth momentum by posting 22% growth in dollar revenue in calendar year 2020, he said.
The newly added European region contributes 8% to the company’s turnover, which has jumped 74% in one year.
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The construction of planned Special Technology Zones (STZ) is expected to provide an enabling environment for IT companies as they will help enhance quality competition, he said.
The pandemic has unleashed the ability of Pakistani businesses to perform offsite tasks seamlessly.
Although 58% growth is huge growth for a Pakistani company, global technology companies are showing growth of 100%, 200% or 300%, therefore, there is a lot to be done.
In the past five years, tech companies in Pakistan have grown by 30-50%, according to experts.
They stressed that the government could invest in infrastructure as well as in human development.
Industry sources claim that of the bulk of computer science graduates produced by Pakistani universities, only 40% are trained to serve the export industry.
Posted in The Express Tribune, April 25e, 2021.