THE country’s IT exports grew by an impressive 42pc in FY15 and reached $468m. And IT exports accounted for 8pc of Pakistan’s total services exports in the last fiscal year.

Since FY03, the industry’s exports have grown at a compounded annual growth rate of 29pc.

The technology sector in the country comprises businesses that are engaged in design, development and sale of software products, as well as the provision of information technology and IT-enabled services and solutions Pakistan’s largest regional competitor is India, which has a massive and well-developed IT sector.

However, Pakistan’s IT sector has exhibited big potential and continues to perform well, having established a sound footing in the region as well as in the Middle Eastern, African, European and North American markets.

Since FY03, the industry’s exports have expanded at a compounded annual growth rate of 29pc

The four publicly listed players in the industry are Avanceon Ltd, Netsol Technologies Ltd, Systems Ltd, TRG Pakistan Ltd. Another major technology company is TPL Trakker Ltd, even though it is listed as a cable and electric goods manufacturer.

There is increasing demand for Pakistan’s technology products and services in both domestic and export markets on the back of businesses’ increased focus on computerisation of processes. This focus stems from their aim to bridge the technology gap and cut costs so they could compete effectively, both with local and foreign peers.

Meanwhile, the government is actively supporting the industry and has taken multiple steps in this regard, including the introduction of technology incubators such as Plan9. It has also increased spending on technology-oriented development projects, such as the Arfa Karim Software Technology Park, in order to nurture the country’s software industry.

Courtesy: Alfalah Securities Pvt. Ltd

Published in Dawn, Business & Finance weekly, November 16th, 2015