Pakistan's Computer Services Exports Jump 26% Amid COVID19 Lockdown

[RiazHaq]

http://www.riazhaq.com/2020/05/pakistans-computer-services-exports.html

Pakistan's computer services exports soared 26% in March, 2020 over the same month last year. This growth occurred in spite of the coronavirus lockdown that began on March 23, 2020. The nation's total services exports fell 17% in the same month.

The ICT services exports bucked the overall down trend in Pakistan's exports. The country exported computer service worth $102.26 million in March, 2020, up 25.77% from $81.31 million in March, 2019. Overall telecommunications, computer and information services increased 19.44% to $134.95 million in March 2020, up from $112.99 million in March 2019. Prior to the current coronavirus lockdown, PBS reported that Pakistan's technology exports increased 26.24% in the first 8 months (July-February) of the current financial year.



Pakistan ICT Exports. Source: PBS

The data released by the PBS showed that Pakistan earned a total amount of $887.47 million during the first eight months (July-February) of the fiscal year 2020, up from $702.99 million during the corresponding period of the fiscal year 2018-19. Computer services exports grew 31.57% to $677.23 million from July 2019 to February 2020 as compared to $514.74 million.

It is generally believed that Pakistan's PBS and central bank underestimate the country's technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.

Pakistan has a thriving community of freelancers. Its digital gig economy growth is the fastest in Asia and fourth fastest in the world, according to digital payments platform Payoneer.


Gig Economy Growth in Q2/2019. Source: Payoneer
United States leads gig economy growth of 78% followed by the United Kingdom 59%, Brazil 48%, Pakistan 47% and Ukraine 36%. Asia growth was led by Pakistan followed by Philippines (35%) , India (29%) and Bangladesh (27%).

The rapid gig economy expansion of 47% in Pakistan was fueled by several factors including the country's very young population 70% of which is under 30 years of age coupled with improvements in science and technical education and expansion of high-speed broadband access. Pakistani freelancers under the age of 35 generated 77% of the revenue in second quarter of 2019.


Growth in Freelance Work. Source: Payoneer

Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
international jobs".


Global Freelance Revenue By Age. Source: Payoneer.


In Q2/2019, Asia cemented its status as a freelancer hub. Pakistan, Bangladesh and India, Philippines made it to the top 10 list, collectively recording 238% increase from Q2/2018.



Online Labor Index. Source: Oxford Internet Institute

As of 2017, Pakistan freelancers ranked fourth in the world and accounted for 8.5% of the global online workforce, according to Online Labor Index compiled by Oxford Internet Institute. India led with 24% share followed by Bangladesh 16%, US 12%, Pakistan 8.5% and Philippines 6.5%.

Related Links:

Haq's Musings

South Asia Investor Review

Digital BRI and 5G in Pakistan

Pakistan Tech Exports Exceed Billion Dollars

Pakistan's Demographic Dividend

Pakistan EdTech and FinTech Startups

State Bank Targets Fully Digital Economy in Pakistan

Campaign of Fear Against CPEC

Fintech Revolution in Pakistan

E-Commerce in Pakistan

The Other 99% of the Pakistan Story

FMCG Boom in Pakistan

Belt Road Forum 2019

Fiber Network Growth in Pakistan

Riaz Haq's Youtube Channel

Viewpoint From Overseas Channel


http://www.riazhaq.com/2020/05/pakistans-computer-services-exports.html

 

[Bilal9]

Great informative article!

Thanks for posting this.

I can report that a decade ago, creative and multimedia (Photoshop, desktop publishing) was the majority of IT exports from Bangladesh, but like other countries, Bangladesh has diversified as well.

Bangladesh has also gone into developing business software and games for the Japanese market, which is unusual but is long-established in it.

The Payoneer data shows that there is an underground economy of sorts for Pakistani software developers, to which I say, Good Luck in their efforts. If Money comes in unreported, it is still money.

 

[Nilgiri]

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

 

[Bilal9]

@RiazHaq Bhaisaab - is there electronics manufacturing (say cellphone manufacturing from scratch as opposed to components assembly) in Pakistan? Thought I'd ask since you seem to be in engineering and waqifahal /knowledgable about these matters.

 

[RiazHaq]

@RiazHaq Bhaisaab - is there electronics manufacturing (say cellphone manufacturing from scratch as opposed to components assembly) in Pakistan? Thought I'd ask since you seem to be in engineering and waqifahal /knowledgable about these matters.

Current annual demand is for about 40 million units of which 13 million are assembled in Pakistan while the rest are imported

https://www.riazhaq.com/2020/01/lower-import-duties-rattle-pakistans.html

 

[Pakistansdefender]

Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
international jobs".

So all the internships in hunar mands jawan. And other government initiative. Technology diplomas. And presidents own specially interest in it is really helping.

 

[RiazHaq]

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

Bulk of India's service exports are salaries of India H1B employees in US.

These could disappear if Trump banned H1B visas for Indians.

https://www.riazhaq.com/2016/04/india-files-h1b-visa-complaint-against.html

 

[Nilgiri]

Bulk of India's service exports are salaries of India H1B employees in US.

These could disappear if Trump banned H1B visas for Indians.

https://www.riazhaq.com/2016/04/india-files-h1b-visa-complaint-against.html

Come again?

https://unctad.org/en/pages/newsdet...onID=1917&Sitemap_x0020_Taxonomy=UNCTAD Home;

Results for the financial year 2016–17 show that from $103 billion of services with the potential to be sold abroad over ICT networks, approximately 81% was in fact delivered via ICT, with 19% being delivered by experts temporarily travelling abroad.

 

[Falcon26]

http://www.riazhaq.com/2020/05/pakistans-computer-services-exports.html

Pakistan's computer services exports soared 26% in March, 2020 over the same month last year. This growth occurred in spite of the coronavirus lockdown that began on March 23, 2020. The nation's total services exports fell 17% in the same month.

The ICT services exports bucked the overall down trend in Pakistan's exports. The country exported computer service worth $102.26 million in March, 2020, up 25.77% from $81.31 million in March, 2019. Overall telecommunications, computer and information services increased 19.44% to $134.95 million in March 2020, up from $112.99 million in March 2019. Prior to the current coronavirus lockdown, PBS reported that Pakistan's technology exports increased 26.24% in the first 8 months (July-February) of the current financial year.



Pakistan ICT Exports. Source: PBS

The data released by the PBS showed that Pakistan earned a total amount of $887.47 million during the first eight months (July-February) of the fiscal year 2020, up from $702.99 million during the corresponding period of the fiscal year 2018-19. Computer services exports grew 31.57% to $677.23 million from July 2019 to February 2020 as compared to $514.74 million.

It is generally believed that Pakistan's PBS and central bank underestimate the country's technology exports. Some have argued that the actual IT exports were closer to $5 billion in fiscal 2018. Some of the differences can be attributed to the fact that the State Bank IT exports data does not include various non-IT sectors such as financial services, automobiles, and health care.

Pakistan has a thriving community of freelancers. Its digital gig economy growth is the fastest in Asia and fourth fastest in the world, according to digital payments platform Payoneer.


Gig Economy Growth in Q2/2019. Source: Payoneer
United States leads gig economy growth of 78% followed by the United Kingdom 59%, Brazil 48%, Pakistan 47% and Ukraine 36%. Asia growth was led by Pakistan followed by Philippines (35%) , India (29%) and Bangladesh (27%).

The rapid gig economy expansion of 47% in Pakistan was fueled by several factors including the country's very young population 70% of which is under 30 years of age coupled with improvements in science and technical education and expansion of high-speed broadband access. Pakistani freelancers under the age of 35 generated 77% of the revenue in second quarter of 2019.


Growth in Freelance Work. Source: Payoneer

Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
international jobs".


Global Freelance Revenue By Age. Source: Payoneer.


In Q2/2019, Asia cemented its status as a freelancer hub. Pakistan, Bangladesh and India, Philippines made it to the top 10 list, collectively recording 238% increase from Q2/2018.



Online Labor Index. Source: Oxford Internet Institute

As of 2017, Pakistan freelancers ranked fourth in the world and accounted for 8.5% of the global online workforce, according to Online Labor Index compiled by Oxford Internet Institute. India led with 24% share followed by Bangladesh 16%, US 12%, Pakistan 8.5% and Philippines 6.5%.

Related Links:

Haq's Musings

South Asia Investor Review

Digital BRI and 5G in Pakistan

Pakistan Tech Exports Exceed Billion Dollars

Pakistan's Demographic Dividend

Pakistan EdTech and FinTech Startups

State Bank Targets Fully Digital Economy in Pakistan

Campaign of Fear Against CPEC

Fintech Revolution in Pakistan

E-Commerce in Pakistan

The Other 99% of the Pakistan Story

FMCG Boom in Pakistan

Belt Road Forum 2019

Fiber Network Growth in Pakistan

Riaz Haq's Youtube Channel

Viewpoint From Overseas Channel


http://www.riazhaq.com/2020/05/pakistans-computer-services-exports.html

How come the State Pakistan isn’t being pressured by the tech sector in Pakistan to fix this. An accurate adjustment will help Pakistan’s own competitiveness.

The true scale of Pakistan’s own economy is said to be understated. Pakistanis must fight their government to fix this.

Thanks for sharing your article. Always a pleasure reading your blog.

“water supply, and even the cup of tea Abid brings him don’t exist in Pakistan’s official figures. They’re part of another economy that doesn’t pay taxes or heed regulations. It probably employs more than three quarters of the nation’s 54 million workers and is worth as much as 50 percent of Pakistan’s 18 trillion rupee ($200 billion) official gross domestic product”

https://www.bloomberg.com/news/articles/2012-04-05/the-secret-strength-of-pakistans-economy

While Pakistan is understating the scale of its economy, India is over exaggerating its economy

 

[Salman876]

How come the State Pakistan isn’t being pressured by the tech sector in Pakistan to fix this. An accurate adjustment will help Pakistan’s own competitiveness.

The true scale of Pakistan’s own economy is said to be understated. Pakistanis must fight their government to fix this.

Thanks for sharing your article. Always a pleasure reading your blog.

“water supply, and even the cup of tea Abid brings him don’t exist in Pakistan’s official figures. They’re part of another economy that doesn’t pay taxes or heed regulations. It probably employs more than three quarters of the nation’s 54 million workers and is worth as much as 50 percent of Pakistan’s 18 trillion rupee ($200 billion) official gross domestic product”

https://www.bloomberg.com/news/articles/2012-04-05/the-secret-strength-of-pakistans-economy

While Pakistan is understating the scale of its economy, India is over exaggerating its economy

We have so so many issues, if we start fighting, no body is going to make softwares

 

[Nilgiri]

While Pakistan is understating the scale of its economy, India is over exaggerating its economy

https://data.worldbank.org/indicator/BX.GSR.GNFS.CD?locations=IN-PK

(as of 2018) 18 times the exports with 6 times the people. 3 times per capita essentially of hard forex accumulation (no govt can distort this, given end-recipient verification by importer countries).

Things also stand contrary to your assertion from space...no govt tabulation involved, simple neutral remote sensing:

https://www.cnn.com/2017/04/13/asia/india-nasa-satellite-night-trnd/index.html

22% of Indians have wealth over 10k USD....compared to 7% of Pakistanis:

https://defence.pk/pdf/threads/modi-our-best-friend.662844/page-3#post-12268020

That same 3x factor popping up.

Or is that all completely wrong (credit suisse analysis) too?

 

[Falcon26]

https://data.worldbank.org/indicator/BX.GSR.GNFS.CD?locations=IN-PK

(as of 2018) 18 times the exports with 6 times the people. 3 times per capita essentially of hard forex accumulation (no govt can distort this, given end-recipient verification by importer countries).

Things also stand contrary to your assertion from space...no govt tabulation involved, simple neutral remote sensing:

https://www.cnn.com/2017/04/13/asia/india-nasa-satellite-night-trnd/index.html

22% of Indians have wealth over 10k USD....compared to 7% of Pakistanis:

https://defence.pk/pdf/threads/modi-our-best-friend.662844/page-3#post-12268020

That same 3x factor popping up.

Or is that all completely wrong (credit suisse analysis) too?

India is serial producer of fake GDP growths. There are number of research papers and news reports to substantiate this. I am not sure why are disputing this.

Modi’s own advisers are disputing their GDP numbers

“Now it looks like that rapid pace may have been overstated. An academic paper by a former chief economic adviser to Prime Minister Narendra Modi estimates annual growth averaged closer to 4.5% a year in the fiscal years from 2011-12 through 2016-17, and says recent changes to the way gross domestic product is measured are problematic.”

https://www.bloomberg.com/news/arti...-accused-of-overstating-its-growth-statistics


India's GDP growth figures are hard to trust

https://asia.nikkei.com/Opinion/India-s-GDP-growth-figures-are-hard-to-trust

India's incredulous data: Economists create own benchmarks

https://www.reuters.com/article/us-...conomists-create-own-benchmarks-idUSKCN1SF0L6

Speaking of Credit Suisse, while India is certainly a huge economy, the wealth is concentrated within the very top strata of the country. The average Pakistani is 20% richer than the average Indian. India has horrible inequality levels.

http://www.riazhaq.com/2016/11/cs-wealth-report-2016-average-pakistani.html?m=1

 

[Nilgiri]

India is serial producer of fake GDP growths. There are number of research papers and news reports to substantiate this. I am not sure why are disputing this.

Because Pakistan is a fauj-cabal run country that is stuck at a lousier IMF standard (GDDS) to begin with...it shows when you look at its credit rating and market cap too.

So comparing a GDDS to a SDDS country is kind of really pretty dumb to begin with, since high frequency indicators are far more prevalent in India to begin with (for the analysis in the first place, just like it is with China where the same GDP manipulation thesis stuff starts).

Join the ball game first if you want to play. Simple.

Otherwise we are simply stuck to pure analysis that doesnt touch govt hands to being with (say imprint on neutral 3rd parties outside the country like trade or observing macrotrends from space)

Speaking of Credit Suisse, while India is certainly a huge economy, the wealth is concentrated within the very top strata of the country. The average Pakistani is 20% richer than the average Indian. India has horrible inequality levels.

Heh haq musing from 2016, that he conveniently didnt update in later more recent years (like say 2019). Wonder why?

It's because you literally didnt read the response, i'll post it again:

https://defence.pk/pdf/threads/modi-our-best-friend.662844/page-3#post-12268020

First line:

What happens when you use the same credit suisse global wealth report, but the latest year available (2019) rather than 2015?

This happens:

https://defence.pk/pdf/threads/average-wealth-per-adult-in-countries-around-the-world-2019.641723/

India Median wealth per adult (2019) = 3042 USD
India Avg wealth per adult (2019) = 14569 USD

Pakistan Median wealth per adult (2019) = 1766 USD
Pakistan Avg wealth per adult (2019) = 4098 USD

(2019) Adults with wealth less than 10k USD:

India = 78.2%
Pakistan = 93.4%

======

How about if we look at multi poverty instead? (that Riaz Haq was similarly in such favour for because of the massive skew India had because of 2005 data used...compared to far more recent for Pakistan.... in the earlier studies he quoted?)

What happens when you bring data up to more recent time frame for both?

Oh right....big fan of it in 2016:

https://defence.pk/pdf/threads/paki...gdp-growth-to-well-being.442125/#post-8523730

Not so big fan of it now in 2019:

https://defence.pk/pdf/threads/indi...o-lead-world-bank.598776/page-4#post-11129373

By pure headcount only (during the respective survey years):

India = 27.5% = 364 million people

Bangladesh = 41.07% = 66 million people

Pakistan = 43.9% = 80 million people

So do the early appraisals of the study from everyone still apply (now) for consistency? Or its not good simply because it doesn't conform to an agenda/feeling/bias anymore?

 

[Falcon26]

Because Pakistan is a fauj-cabal run country that is stuck at a lousier IMF standard (GDDS) to begin with...it shows when you look at its credit rating and market cap too.

So comparing a GDDS to a SDDS country is kind of really pretty dumb to begin with, since high frequency indicators are far more prevalent in India to begin with (for the analysis in the first place, just like it is with China where the same GDP manipulation thesis stuff starts).

Join the ball game first if you want to play. Simple.

Otherwise we are simply stuck to pure analysis that doesnt touch govt hands to being with (say imprint on neutral 3rd parties outside the country like trade or observing macrotrends from space)



Heh haq musing from 2016, that he conveniently didnt update in later more recent years (like say 2019). Wonder why?

It's because you literally didnt read the response, i'll post it again:

https://defence.pk/pdf/threads/modi-our-best-friend.662844/page-3#post-12268020

First line:

What happens when you use the same credit suisse global wealth report, but the latest year available (2019) rather than 2015?

This happens:

https://defence.pk/pdf/threads/average-wealth-per-adult-in-countries-around-the-world-2019.641723/

India Median wealth per adult (2019) = 3042 USD
India Avg wealth per adult (2019) = 14569 USD

Pakistan Median wealth per adult (2019) = 1766 USD
Pakistan Avg wealth per adult (2019) = 4098 USD

(2019) Adults with wealth less than 10k USD:

India = 78.2%
Pakistan = 93.4%

======

How about if we look at multi poverty instead? (that Riaz Haq was similarly in such favour for because of the massive skew India had because of 2005 data used...compared to far more recent for Pakistan.... in the earlier studies he quoted?)

What happens when you bring data up to more recent time frame for both?

Oh right....big fan of it in 2016:

https://defence.pk/pdf/threads/paki...gdp-growth-to-well-being.442125/#post-8523730

Not so big fan of it now in 2019:

https://defence.pk/pdf/threads/indi...o-lead-world-bank.598776/page-4#post-11129373

By pure headcount only (during the respective survey years):

India = 27.5% = 364 million people

Bangladesh = 41.07% = 66 million people

Pakistan = 43.9% = 80 million people

So do the early appraisals of the study from everyone still apply (now) for consistency? Or its not good simply because it doesn't conform to an agenda/feeling/bias anymore?

What does Pakistan has to do with India fudging up its GDP numbers? Talk about red herring.

Pakistan has historically been better off economically than India. The average Pakistan is today certainly well off than the average Indian despite Pakistan suffering from terrorism during the past decade. If Pakistan is a Fauju run cabal than India with atrocious inequality is certainly an oligarchy; in fact, as Raiz Haq showed, India is the biggest oligarch after Russia.

https://www.brookings.edu/blog/futu...-on-with-income-trends-in-india-and-pakistan/

 

[Kyusuibu Honbu]

Come again?

https://unctad.org/en/pages/newsdetails.aspx?OriginalVersionID=1917&Sitemap_x0020_Taxonomy=UNCTAD Home;

Results for the financial year 2016–17 show that from $103 billion of services with the potential to be sold abroad over ICT networks, approximately 81% was in fact delivered via ICT, with 19% being delivered by experts temporarily travelling abroad.

Old wine new bottle