Pakistan’s IT Industry Overview 2020 Pakistan Software Export Board Ministry of Information Technology & Telecommunication pseb.org.pk TechdestiNationPakistan moitt.gov.pk TechDestPak techdestination.com Pakistan’s IT Industry Overview Pakistan Software Export Board Ministry of Information Technology & Telecommunication Government of Pakistan Minister’s Message “Our IT vision is to put in place an accelerated digitization ecosystem to enable socio-economic development, to expand knowledge-based economy and to spur the economic growth.” The rapid adoption of Information and most popular country for freelancing in the world. Communication Technology (ICT) is immensely Pakistan’s ICT Industry has been a resounding important for the socio-economic development success story for Pakistan, having achieved a of the country. In the spirit of democratic stellar remittance inflow growth rate and being Syed Amin ul Haque governance, revolutionary policies and visionary the largest net exporter in the services sector. Federal Minister approach, the present government’s main focus is Ministry of Information to enhance the growth of Pakistan’s economy. The The Government believes in leading initiatives Technology & efforts are paying off as the IT industry is growing pertaining to IT Growth. Honorable President Telecommunication in terms of the number of companies, revenue, of Pakistan is leading Ministry of IT’s initiatives exports and workforce every year thereby regarding Emerging Technologies and allied demonstrating clear confidence in the ability of the verticals. The Government believes to facilitate local companies to deliver IT solutions and services investment in IT/ITES Sector. To match this which meet the expectations of foreign clients. spirit, Ministry of IT & Telecom has an open door policy to provide facilitation round the I am pleased to inform you that with more than clock, be it any foreign or domestic investor 10,000 software houses and call centers at present, interested in IT/ITES Business growth. Pakistan’s IT industry is now a well-established IT services provider to clients across the globe. I invite you to consider Pakistan’s IT industry for Many Pakistani IT companies serves the world’s investment and outsourcing at substantial annual largest companies as their clients. You might find cost savings but with the same IT service quality and it interesting to note that according to Global Gig standards as in other countries and to capitalize Economy Index 2019, Pakistan is ranked as the 4th on the economic growth in the local economy. PAKISTAN’S IT INDUSTRY OVERVIEW |3 Secretary’s Message PSEB is mandated to promote Pakistan’s IT industry open door policy, we are here to facilitate companies across the globe. IT companies have largely benefited interested in business investment/ growth in IT/ from PSEB’s initiatives by generating valuable business ITES Sector, E-Commerce, E-Governance and other leads, establishing strategic linkages in foreign IT’ related verticals. This Ministry is working hard to locations and signing outsourcing contracts with their ensure pro-investment IT policy initiatives with an foreign counterparts. inclusive policy development process in the country. The Government realizes that it has an important role Pakistan’s IT industry has indeed done well and in terms of providing a conducive environment to IT due credit goes to the enterprising entrepreneurs industry through infrastructure and HR development. and skilled workforce for coming up with creative PSEB has been playing a key role in promoting IT Shoaib Ahmad Siddiqui and imaginative solutions. Pakistani IT companies industry in the past and I hope that it will continue Federal Secretary consistently receive recognition at International to play an even bigger role in the future to contribute Ministry of Information competitions such as Asia Pacific Information towards Pakistan’s economic growth. Technology & and Communication Technology Awards (APICTA) Telecommunication in different categories including startup, mobile applications, e-learning, e-health, e-government, security, supply chain management, communications, and financial applications. The Ministry of IT & Telecom, through Pakistan Software Export Board, continues to support all credible private sector initiatives aimed at bolstering the local IT industry and to attract foreign investment. We believe in ensuring fast track approach to facilitate IT foreign companies for business expansion. With an 4 | PAKISTAN’S IT INDUSTRY OVERVIEW MD’s Message The IT sector has achieved consistent, companies, including call centers and IT partnership with various organizations consecutive year on year growth that can startups, belonging to underserved areas of which could potentially include collateral- be the envy of any industry anywhere in the country has been waived. PSEB is also free business loans and health insurance the world and is a superstar on its way evangelizing the possibility of revitalizing subsidy to freelancers in partnership with to possibly becoming the largest foreign defunct industrial units for conversion into the relevant government programs. exchange earner for Pakistan. Already, the IT Business Process Outsourcing Centers/ Several PSEB initiatives are in various stages, industry is among the top five net exporters Software Technology Parks, and potential including the new PSEB web portal, branding of the country with the highest net exports in Cloud data centers, through Public-Private of the Pakistan tech industry, development the services industries. Pakistan’s IT industry Partnerships. of new marketing collateral and industry is exporting products and services to the The immense global demand for technology whitepapers, and establishment of 40 world’s largest entities in over 120 countries. solutions and services generated through additional Software Technology Parks. PSEB is being modernized as a front leading the COVID-19 inflicted enterprise digital PSEB is also preparing to sign a partnership Osman Nasir global business development and marketing transformation, and the steady handling with Pakistan Stock Exchange for enlisting organization to supercharge the growth of of COVID’s impacts by the Government medium-and-large sized technology Managing Director Pakistan’s technology exports, which would of Pakistan calls for immediate training of companies on the private trading floor Pakistan Software Export address the supply-side issues such as thousands of new IT professionals to sustain enabling these companies to raise capital. Board physical and digital infrastructure availability, the flow of orders. PSEB is launching several PSEB is also launching a major business human resource enablement, access to programs to train the bottom of the pyramid development initiative involving the foreign capital, marketing initiatives, and policy and the middle of the pyramid technology resident Pakistani technology professionals initiatives from behind the borders. Taking professionals in partnership with the IT to offer their services as sales leaders for the momentum of our supply-side initiatives, industry’s trade body P@SHA and industry the Pakistani technology companies in we will be looking to execute business training partners. their respective countries of residence. development efforts to generate demand Software Houses and BPO centers registered This program will be launched with the from beyond the borders. with PSEB have reached a figure of 2860 new country-branding slogan, logos and PSEB recognizes the fact that our technology by 31st December 2020, out of more than a dedicated website for the tech industry industry has traditionally been focused 10,000 tech companies actively registered “TECH destiNATION PAKISTAN.” around the Karachi-Lahore-Islamabad in Pakistan. The increased business demand Cooperation and coordination between factor, including only 17% of the country’s has seen the revenues of these entities academic institutions, IT Industry and population. It is critical to understand soaring significantly and consistently, provincial tech boards are being enhanced that we can only get to our $10 Billion of crossing $1.23 Billion. significantly to ensure holistic growth of the technology exports target by triggering The sustained growth of the technology IT Industry across Pakistan. the tech ecosystem across the remaining freelancing phenomenon is now prominently Keeping in view the importance of Pakistan’s 83% of the population. Secondary cities of registering itself on the export scoreboard. IT industry, the government is placing top Pakistan are now being given priority for Bringing in approximately 10% of the total priority on the growth of Pakistan’s IT sector establishing Software Technology Parks, technology revenues, PSEB is working on and is making all possible efforts to sustain while the PSEB registration fee for IT & ITeS a comprehensive facilitation package, in and enhance its growth. PAKISTAN’S IT INDUSTRY OVERVIEW |5 Contents 03 Minister’s Message 15 GovTech 27 Financial Facilitation 04 Secretary’s Message 17 Skilled Workforce 27 Global Statistics Global ICT Industry 05 MD’s Message 18 Freelancer: A Workforce 28 in Acceleration Overview 07 IT Industry of 19 Startup Ecosystem 29 Global Statistics Pakistan Key Categories of the Software Technology Parks 08 Pakistan ICT Exports 21 30 Information Technology in Secondary Cities Industry 09 Ecosystem of Pakistan 23 Software Technology IT Industry Park in Gilgit 11 Pakistan’s IT & ITES 25