According to a report by Usman Hanif in The Express Tribune, Pakistan witnessed a significant 24% increase in IT exports in May 2023, with a total value of $236 million.
This surge compared to the previous month is a promising development for the IT sector. However, compared to last year’s period, there was a slight decline of 1% in exports on a year-on-year (YoY) basis.
In an interview with The Express Tribune, Nasheed Malik from Topline Securities highlighted the significant growth in telecom and computer services on a month-on-month (MoM) basis among the contributors of the 24% Increase in IT Exports.
Telecom services witnessed an impressive increase of 92%, while computer services experienced an 11% growth. Within the computer services segment, software exports, other services, and software consultancy demonstrated growth rates of 14%, 13%, and 8%, respectively.
According to Arif Habib Limited (AHL) research, technology exports in May 2023 experienced a substantial year-on-year (YoY) growth of 28%, reaching the highest monthly export value since December 2022.
However, despite this positive development, technology exports for the 11 months of FY2023 amounted to $2.369 billion, reflecting a 1% decline compared to the previous year.
What’s the Reason for MoM Increase?
The month-on-month (MoM) rise in IT exports can be attributed to more working days in May 2023 compared to April 2023, said Malik. Additionally, services exports, excluding IT, also experienced growth, increasing by 18% MoM in May 2023.
However, it is worth noting that the realization of IT export proceeds per working day declined from $11.2 million in April 2023 to $10.7 million in May 2023.
Nasheed Malik added that based on the current pace, IT exports are projected to reach $2.58 billion in FY2023, reflecting a 1% year-on-year (YoY) decrease compared to FY2022.
The Future Outlook
Gartner research forecasts that, despite the global economic slowdown, there will be a notable increase of 12% in software spending and 9% in IT services spending in 2023.
This presents a significant opportunity for Pakistani exporting companies in the technology sector.