Pakistan’s IT exports are definitely rising, but fears are rising that taxes and poor internet infrastructure are quickly becoming barriers to growth

Pakistan’s IT industry has often been touted as one of the handful of sectors where exports are growing. It has emerged as one of the key ‘advertising’ points of the current government, where almost every month it is reported that IT exports are increasing.

There is some truth to this trend. The IT exports are growing, but the numbers mask a disconcerting reality. Although these exports are rising, the growth rate appears to be slightly decreasing, if not stable. And there is great scepticism regarding what the state of IT exports might be in the coming years.

To get the industry’s perspective on this, Profit conducted a survey of leading IT executives engaged in the export of IT products and services. What emerged from these were several key findings. For most of the exporters who responded, the IT export earnings over the past year registered an increase. For most of the rest of the responders, such export earnings remained stable. For those whose earnings decreased, an overwhelming percentage of them reported that this increase was registered at an increasing rate compared to the previous year. A small minority reported a decrease in their earnings. AI remained a curious cause, with respondents attributing growth, stability, and even decrease in export revenues to the advancements in AI. 

The outlook of the industry regarding IT exports over the next two years remained, in general, caught between measured optimism and frank pessimism. Optimism was registered in the responses of those whose earnings had increased, while those whose earnings remained stable or decreased have had a more reserved outlook for the future. Even those who were hopeful, hedged their predictions with several statements conditioning such outcomes on the favourability of several variables. Geopolitical risk and infrastructural constraints remained the major reasons for pessimism in this case. AI, again, remained a common point, with companies believing - with varying degrees of hope - that those who will be able to adapt to this trend, will see growth.