Pakistan Software exports touch 5 billion mark

[Flight of falcon]

According to The U.S. Department of Commerce’s International Trade Administration Pakistan software export touched $5 billion mark in 2019.


https://www.export.gov/article?id=Pakistan-Computer-Software

Last Published: 7/10/2019

Overview
Pakistan’s market for computer software has seen steady growth for the past several years. According to the Pakistan Software Export Board (PSEB), the total size of the software sector is approximately $6.5 billion, which is expected to grow at least 3.5 percent in the next five years. The local software market is export-orientated; however, it is dependent on imports for the latest technologies and services. During FY 2018-19, Pakistan’s software exports were approximately $5 billion, which is 8 percent higher than the previous year. In addition, the domestic consumption of software applications supported by direct imports and local development is approximately $1.2 billion, which has declined marginally by approximately 2 percent compared to FY 2017-18. Major international software brands from the United States, the United Kingdom, Germany, Spain, and China have already established a strong presence in Pakistan.

Local application developers, freelancers, and IT companies are the major driving force behind the success of the computer software sector in Pakistan. There are approximately 1,500 registered local companies involved in a variety of applications development for domestic and corporate use. The majority of high-end companies are involved in the development and distribution of enterprise resource management and customized solutions for specific industry sectors. In addition, there is a growing interest from local companies and freelancers to enter the online space, especially after the launch of 3G and 4G cellular spectrums in Pakistan. The majority of these development activities involve consumer applications based on Android or Apple platforms, website development, e-wallets/payments, e-commerce, and online gaming. Most foreign firms operate either through their appointed local distributor or by having their own office with fully-equipped technical and support teams to cater to their customers’ needs.

The Government of Pakistan on both federal and provincial levels places a high priority on the development of the IT industry, including the software development sector. According to PSEB, the government has launched several policies to encourage local and foreign companies to invest in Pakistan. Some of these incentives include: (1) 100% ownership of equity; (2) income tax exemption on IT exports revenue until June 2019;(3) 100% repatriation of profits; (4) tax holiday for venture capital funds until June 2024; (5) accelerated depreciation of 30 percent on computer equipment; (6) the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts; and (7) availability of instant, reliable and high-speed internet connectivity. In addition, the federal government and the private sector have made concerted efforts to improve existing internet availability and connectivity throughout the country. According to official statistics, approximately 85 percent of the local telecommunication infrastructure is via fiber-optic lines, which provides internet access to over 2000 cities and towns. In addition, the government and private sectors have initiated an aggressive strategy to develop new IT educational institutions and introduce new curriculums and short training programs to consistently maintain the local human resource pool.
Leading Sub-Sectors
The most promising sub-sectors for U.S. companies within the computer software sector for FY-2020 are:

• E-commerce
• Company Acquisitions and Mergers
• IT Parks
• Incubators
• Venture Funds
• Software Companies
• Call Centers
• Gaming and Animation Studios
• Data Centers
• Training Centers
• Consulting Centers

Opportunities
According to the Pakistan’s Ministry of Finance, during FY 2017-18, the local economy achieved the considerable growth rate of 5.8 percent despite chronic challenges including an energy crisis and terrorism. The local software market offers substantial business opportunities for U.S. companies who offer products for the corporate sector including financial management and business forecasting, online IT training portals, e-commerce, e-payment, embedded tools, and other web-based applications.
Industry experts expressed optimism about growth prospects in the e-commerce sector, projecting $1 billion in revenue by 2020. Increased use of mobile wallets, coupled with cheaper, more reliable smartphones, has helped increase the user base for Pakistan’s ecommerce industry.
Web Resources
Ministry of Information Technology
Ministry of Economic Affairs and Statistics
Pakistan Software Export Board
Punjab Information Technology Board





Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

 

[touela]

According to The U.S. Department of Commerce’s International Trade Administration Pakistan software export touched $5 billion mark in 2019.


https://www.export.gov/article?id=Pakistan-Computer-Software

Last Published: 7/10/2019

Overview
Pakistan’s market for computer software has seen steady growth for the past several years. According to the Pakistan Software Export Board (PSEB), the total size of the software sector is approximately $6.5 billion, which is expected to grow at least 3.5 percent in the next five years. The local software market is export-orientated; however, it is dependent on imports for the latest technologies and services. During FY 2018-19, Pakistan’s software exports were approximately $5 billion, which is 8 percent higher than the previous year. In addition, the domestic consumption of software applications supported by direct imports and local development is approximately $1.2 billion, which has declined marginally by approximately 2 percent compared to FY 2017-18. Major international software brands from the United States, the United Kingdom, Germany, Spain, and China have already established a strong presence in Pakistan.

Local application developers, freelancers, and IT companies are the major driving force behind the success of the computer software sector in Pakistan. There are approximately 1,500 registered local companies involved in a variety of applications development for domestic and corporate use. The majority of high-end companies are involved in the development and distribution of enterprise resource management and customized solutions for specific industry sectors. In addition, there is a growing interest from local companies and freelancers to enter the online space, especially after the launch of 3G and 4G cellular spectrums in Pakistan. The majority of these development activities involve consumer applications based on Android or Apple platforms, website development, e-wallets/payments, e-commerce, and online gaming. Most foreign firms operate either through their appointed local distributor or by having their own office with fully-equipped technical and support teams to cater to their customers’ needs.

The Government of Pakistan on both federal and provincial levels places a high priority on the development of the IT industry, including the software development sector. According to PSEB, the government has launched several policies to encourage local and foreign companies to invest in Pakistan. Some of these incentives include: (1) 100% ownership of equity; (2) income tax exemption on IT exports revenue until June 2019;(3) 100% repatriation of profits; (4) tax holiday for venture capital funds until June 2024; (5) accelerated depreciation of 30 percent on computer equipment; (6) the State Bank of Pakistan (SBP) has allowed banks to open Internet Merchant Accounts; and (7) availability of instant, reliable and high-speed internet connectivity. In addition, the federal government and the private sector have made concerted efforts to improve existing internet availability and connectivity throughout the country. According to official statistics, approximately 85 percent of the local telecommunication infrastructure is via fiber-optic lines, which provides internet access to over 2000 cities and towns. In addition, the government and private sectors have initiated an aggressive strategy to develop new IT educational institutions and introduce new curriculums and short training programs to consistently maintain the local human resource pool.
Leading Sub-Sectors
The most promising sub-sectors for U.S. companies within the computer software sector for FY-2020 are:

• E-commerce
• Company Acquisitions and Mergers
• IT Parks
• Incubators
• Venture Funds
• Software Companies
• Call Centers
• Gaming and Animation Studios
• Data Centers
• Training Centers
• Consulting Centers

Opportunities
According to the Pakistan’s Ministry of Finance, during FY 2017-18, the local economy achieved the considerable growth rate of 5.8 percent despite chronic challenges including an energy crisis and terrorism. The local software market offers substantial business opportunities for U.S. companies who offer products for the corporate sector including financial management and business forecasting, online IT training portals, e-commerce, e-payment, embedded tools, and other web-based applications.
Industry experts expressed optimism about growth prospects in the e-commerce sector, projecting $1 billion in revenue by 2020. Increased use of mobile wallets, coupled with cheaper, more reliable smartphones, has helped increase the user base for Pakistan’s ecommerce industry.
Web Resources
Ministry of Information Technology
Ministry of Economic Affairs and Statistics
Pakistan Software Export Board
Punjab Information Technology Board





Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.

5 billion $ in export?
I doubt, that accounts nearly 20 % of the total export. If it had such a Big share it would be more highlighted

 

[Flight of falcon]

Well the source is US department of commerce.

The biggest problem in Pakistan is undocumented economy. Some say our informal economy is as big as formal .

These software exports are always controversial . They set up export houses in foreign country and get the work done for pennies in Pakistan and keep the payments in the foreign country significantly underreporting their business.

What the above statement is saying is that they export that much now if they report to the government for tax purposes and for documentation is anyone’s guess.

 

[The Accountant]

Well the source is US department of commerce.

The biggest problem in Pakistan is undocumented economy. Some say our informal economy is as big as formal .

These software exports are always controversial . They set up export houses in foreign country and get the work done for pennies in Pakistan and keep the payments in the foreign country significantly underreporting their business.

What the above statement is saying is that they export that much now if they report to the government for tax purposes and for documentation is anyone’s guess.

Even in that case 5 billion dollars is not possible ... either its 5 million dollars or 5 billion rupees

 

[ps3linux]

If there is one thing I trust about US is their research data, this data is US department of commerce so pretty much reliable. If true then forensic should be done where is the forex going or what is included in it, products, services, HR?

 

[Flight of falcon]

Even in that case 5 billion dollars is not possible ... either its 5 million dollars or 5 billion rupees

What a dumb post.
This number is confirmed by many sources. The government only reports what comes to them as taxes and declared by the exporters. I already told you how these software houses underreport . Pakistan software export board is also predicting 5 billion exports for 2019z see below:

http://www.unitedsol.net/blog/pakistan-will-become-top-it-exporter-in-the-future/


Home to a heterogeneous IT Market that offers billions of opportunities to local as well as foreign investors, Pakistan is in the fast lane to become one of the leading IT powerhouses in the World.

Fortunately, Pakistan fosters a sound combination adept youth and investment power that has helped its IT exports to reach several new milestones over the course of recent years.

Between 2016 and 2017, Pakistan’s IT sector made great leaps in revenue and the BOP showed an amazing improvement with exports at $3.3 Billion. In 2018, Pakistan reached the $ 5 billion mark and the Pakistan Software Exports Board (PSEB) has already chalked out a plan with the previous government to boost the exports to over $6 billion by the end of 2020 and $10 billion by the end of 2025.

Pakistan IT exports surged 13.4% to $1.06 billion in the fiscal year 2018 from $939 million in the fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in the fiscal year 2017.

This is well supported by Pakistan’s Academic institutes who are now producing 20,000 IT graduates every year. Pakistani Universities are actively engaged with students, offering them numerous opportunities to hone their skills and move to the frontlines where they can grow into successful CEOs. Some of the top contributors in IT include FAST, COMSATS, NUST, LUMS, and GIKIST. Moreover, students are also facilitated with grants, sponsorships, and incubator infrastructure so they may easily manage their investment capital and gain a firm foothold in the IT industry.

To further promote Pakistan’s entrepreneurial drive, the Government has also taken certain measures to encourage the youth into utilizing their expertise in different IT-related ventures. One of the most recent examples is Plan9, a tech incubator introduced by the Punjab Information Technology Board to help underprivileged entrepreneurs build and grow their innovational ideas. These platforms have served as an impetus for building sustainable environments where different people from different backgrounds can gather, kick start their IT ideas and turn them into reality.

Some of their most successful ventures are Patari – a music streaming application and Markhor – a premium quality manufacturer of traditional shoes.

Pakistan’s IT industry is showing a remarkable growth in a diversity of its sectors, where the enterprise software has grown by 17%, marketing tech 15%, financial services 13%, consumer goods 9%, retail/e-commerce 8%, professional services 8%, internet of things/hardware 7%, health care 4%, media 4% and non-profit 3%.

Moreover, many smaller cities are now maturing into nurturing grounds for IT startups in Pakistan. This goes contrary to popular belief that only tech-rich and infrastructure savvy cities such as Lahore, Karachi, and Islamabad can be sustainable platforms for IT startups.

Another reason it Pakistan’s startup industry has been quite successful is that most new entrepreneurs are limited with few opportunities, which rather acts as an advantage since investors stay for longer periods instead of abandoning early due legal, financial and administrative challenges in the start.

While the IT exports are only a billion dollars at the moment, these are growing in exponentially and already account for the 3rd largest export category after commodities such as textiles and food items. They are also the fastest growing segment of Pakistan’s exports and their demand has always increased by time.

Final Words

Pakistan is a country that was long plagued by political upheavals and socio-economic instability. By focusing efforts on its IT sector, Pakistan has turned a leaf, buffing away its image as a bad investment country, to a country where many American, European and Middle-Eastern corporates are now buying IT services from.

 

[The Accountant]

View attachment 577607


What a dumb post.
This number is confirmed by many sources. The government only reports what comes to them as taxes and declared by the exporters. I already told you how these software houses underreport . Pakistan software export board is also predicting 5 billion exports for 2019z see below:

http://www.unitedsol.net/blog/pakistan-will-become-top-it-exporter-in-the-future/


Home to a heterogeneous IT Market that offers billions of opportunities to local as well as foreign investors, Pakistan is in the fast lane to become one of the leading IT powerhouses in the World.

Fortunately, Pakistan fosters a sound combination adept youth and investment power that has helped its IT exports to reach several new milestones over the course of recent years.

Between 2016 and 2017, Pakistan’s IT sector made great leaps in revenue and the BOP showed an amazing improvement with exports at $3.3 Billion. In 2018, Pakistan reached the $ 5 billion mark and the Pakistan Software Exports Board (PSEB) has already chalked out a plan with the previous government to boost the exports to over $6 billion by the end of 2020 and $10 billion by the end of 2025.

Pakistan IT exports surged 13.4% to $1.06 billion in the fiscal year 2018 from $939 million in the fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in the fiscal year 2017.

This is well supported by Pakistan’s Academic institutes who are now producing 20,000 IT graduates every year. Pakistani Universities are actively engaged with students, offering them numerous opportunities to hone their skills and move to the frontlines where they can grow into successful CEOs. Some of the top contributors in IT include FAST, COMSATS, NUST, LUMS, and GIKIST. Moreover, students are also facilitated with grants, sponsorships, and incubator infrastructure so they may easily manage their investment capital and gain a firm foothold in the IT industry.

To further promote Pakistan’s entrepreneurial drive, the Government has also taken certain measures to encourage the youth into utilizing their expertise in different IT-related ventures. One of the most recent examples is Plan9, a tech incubator introduced by the Punjab Information Technology Board to help underprivileged entrepreneurs build and grow their innovational ideas. These platforms have served as an impetus for building sustainable environments where different people from different backgrounds can gather, kick start their IT ideas and turn them into reality.

Some of their most successful ventures are Patari – a music streaming application and Markhor – a premium quality manufacturer of traditional shoes.

Pakistan’s IT industry is showing a remarkable growth in a diversity of its sectors, where the enterprise software has grown by 17%, marketing tech 15%, financial services 13%, consumer goods 9%, retail/e-commerce 8%, professional services 8%, internet of things/hardware 7%, health care 4%, media 4% and non-profit 3%.

Moreover, many smaller cities are now maturing into nurturing grounds for IT startups in Pakistan. This goes contrary to popular belief that only tech-rich and infrastructure savvy cities such as Lahore, Karachi, and Islamabad can be sustainable platforms for IT startups.

Another reason it Pakistan’s startup industry has been quite successful is that most new entrepreneurs are limited with few opportunities, which rather acts as an advantage since investors stay for longer periods instead of abandoning early due legal, financial and administrative challenges in the start.

While the IT exports are only a billion dollars at the moment, these are growing in exponentially and already account for the 3rd largest export category after commodities such as textiles and food items. They are also the fastest growing segment of Pakistan’s exports and their demand has always increased by time.

Final Words

Pakistan is a country that was long plagued by political upheavals and socio-economic instability. By focusing efforts on its IT sector, Pakistan has turned a leaf, buffing away its image as a bad investment country, to a country where many American, European and Middle-Eastern corporates are now buying IT services from.

Mond your language man and read before you post.

Here is extract of para from the article you posted:

Pakistan IT exports surged 13.4% to $1.06 billion in the fiscal year 2018 from $939 million in the fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in the fiscal year 2017.

Do sone research before posting BS

 

[nahtanbob]

Well the source is US department of commerce.

The biggest problem in Pakistan is undocumented economy. Some say our informal economy is as big as formal .

These software exports are always controversial . They set up export houses in foreign country and get the work done for pennies in Pakistan and keep the payments in the foreign country significantly underreporting their business.

What the above statement is saying is that they export that much now if they report to the government for tax purposes and for documentation is anyone’s guess.

that is contribution to the foreign country. the pennies is what Pakistan gets to include

 

[Flight of falcon]

Mond your language man and read before you post.

Here is extract of para from the article you posted:

Pakistan IT exports surged 13.4% to $1.06 billion in the fiscal year 2018 from $939 million in the fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in the fiscal year 2017.

Do sone research before posting BS

No you should read before you post...it will Help to read properly



“Between 2016 and 2017, Pakistan’s IT sector made great leaps in revenue and the BOP showed an amazing improvement with exports at $3.3 Billion. In 2018, Pakistan reached the $ 5 billion mark and the Pakistan Software Exports Board (PSEB) has already chalked out a plan with the previous government to boost the exports to over $6 billion by the end of 2020 and $10 billion by the end of 2025.”

 

[nahtanbob]

No you should read before you post...it will Help to read properly



“Between 2016 and 2017, Pakistan’s IT sector made great leaps in revenue and the BOP showed an amazing improvement with exports at $3.3 Billion. In 2018, Pakistan reached the $ 5 billion mark and the Pakistan Software Exports Board (PSEB) has already chalked out a plan with the previous government to boost the exports to over $6 billion by the end of 2020 and $10 billion by the end of 2025.”

Name the companies that registered the $5 billion in revenues

 

[Flight of falcon]

Name the companies that registered the $5 billion in revenues

How about you do your own research

 

[Yaseen1]

laptop scheme of previous govt although has corruption but played an important role in boosting our IT sector and freelancing

 

[Nilgiri]

Mond your language man and read before you post.

Here is extract of para from the article you posted:

Pakistan IT exports surged 13.4% to $1.06 billion in the fiscal year 2018 from $939 million in the fiscal year 2017. The growth was even more robust in the prior year with IT exports rising 19.1% from $789 million in fiscal 2016 to reach $939 million in the fiscal year 2017.

Do sone research before posting BS

It seems some people getting confused between exports of (total) services vs exports of IT specifically (i.e ICT services):

Total service export:

https://data.worldbank.org/indicator/BX.GSR.NFSV.CD?locations=PK

ICT export:

https://data.worldbank.org/indicator/BX.GSR.CCIS.CD?locations=PK

Also. State bank of pakistan figure for 18/19 FY = 1 billion (last page under "telecom, computer and information services"):

http://www.sbp.org.pk/publications/export/2019/Jun/2.pdf

If there is one thing I trust about US is their research data, this data is US department of commerce so pretty much reliable. If true then forensic should be done where is the forex going or what is included in it, products, services, HR?

Export.gov is just quoting from some media article quoting "PSEB" and details are lost in chinese whispers (given different between total services and IT and also total revenue vs exports).

You can see the breakdown as reported by SBP above.

 

[FCPX]

Some years back when I was in the market for software systems I was approached by a number of Pak companies some of whom had pretty good products and all of them wanted to keep the proceeds of sales and support overseas so it may be that the actual $ numbers are higher than stated but it doesnt directly benefit Pak.

 

[Flight of falcon]

Some years back when I was in the market for software systems I was approached by a number of Pak companies some of whom had pretty good products and all of them wanted to keep the proceeds of sales and support overseas so it may be that the actual $ numbers are higher than stated but it doesnt directly benefit Pak.

Our family friends do the same thing. Office in New York work done in Lahore

.... nothing to declare