Many factors have battered Pakistan’s economy over the last few years. Amid all the shocks of COVID-19, rising inflation, high energy prices, and supply chain shocks, Pakistan’s economy has witnessed constant growth in the IT sector.
Its startup sector is proving to be the silver lining for the country. After the shock of the pandemic, the government will take off in coming years, as there is a revival of traditional sectors and the IT sector.
The government’s effective and on time measures to survive from shocks to the economy not only controlled damage but also helped to put Pakistan’s economy on the right track.
The Prime Minister of Pakistan, Imran Khan, and the state bank of Pakistan have introduced various policy measures to revive many traditional economic sectors of the country, like textiles, agriculture, and many other industries.
The government also laid a solid foundation for "Digital Pakistan." which will revolutionize the IT industry of Pakistan and trigger an economic boom in the country.
The President of Pakistan, Dr Arif Alvi, speaking at an event called Biznet 2022, celebrated the success of Pakistani startups and corporate innovation.
The President said that the government is taking more steps to encourage the growth of the IT industry and startups and also ensure access to bank loans at low interest rates.
He emphasized further investments in upcoming start-ups and technologies.
With the rise of online and remote work, the growth of start-ups has increased manifolds in Pakistan. The start-up sector, including e-commerce, food and grocery online delivery, Fintech, logistics, ride hailing, and many others, will bring an IT revolution to a country.
About 83 start-ups in Pakistan raised $350 million in 2021, as compared to $65 million in 2020. They are expected to grow in the next five years because of the government’s effective policies and incentives for the IT sector.
The five largest startups last year were:
The Securities and Exchange Commission of Pakistan, which oversees non-banking corporations, has also given a legal definition for start-ups. The federal government of Pakistan has also set up special technology zones.
From July 2021 to February 2022, Pakistan's state bank released new data that showed that information and communication technology exports rose by 30%.
From the data of the central bank, it is pointed out that in terms of contribution to the economy, ICT has become the top service sector.
ICT exports are growing in all segments, including telecom services, software consultancy, and call centers. Efforts by the government are yielding results. Industry leaders say that the government's policies for the IT sector are working the best, and the government is working hard to help the IT sector through its program, Digital Pakistan.
By witnessing the central bank’s data, the leaders of the IT industry said that the government’s efforts are being reflected in the IT industry. They were of the view that the government’s target of $50 billion could only be achieved if the government gave tax incentives, tax holidays, and other benefits to the IT industry.
Image by Innova Labs from Pixabay
Its startup sector is proving to be the silver lining for the country. After the shock of the pandemic, the government will take off in coming years, as there is a revival of traditional sectors and the IT sector.
The government’s effective and on time measures to survive from shocks to the economy not only controlled damage but also helped to put Pakistan’s economy on the right track.
The Prime Minister of Pakistan, Imran Khan, and the state bank of Pakistan have introduced various policy measures to revive many traditional economic sectors of the country, like textiles, agriculture, and many other industries.
The government also laid a solid foundation for "Digital Pakistan." which will revolutionize the IT industry of Pakistan and trigger an economic boom in the country.
The President of Pakistan, Dr Arif Alvi, speaking at an event called Biznet 2022, celebrated the success of Pakistani startups and corporate innovation.
The President said that the government is taking more steps to encourage the growth of the IT industry and startups and also ensure access to bank loans at low interest rates.
He emphasized further investments in upcoming start-ups and technologies.
Startup Growth in the IT Sector
Education has increased amid the COVID-19 crisis, pandemic lockdowns, quarantines, and the need for online businesses. Pakistan is one of the untapped markets for startups to offer internet-based services.With the rise of online and remote work, the growth of start-ups has increased manifolds in Pakistan. The start-up sector, including e-commerce, food and grocery online delivery, Fintech, logistics, ride hailing, and many others, will bring an IT revolution to a country.
About 83 start-ups in Pakistan raised $350 million in 2021, as compared to $65 million in 2020. They are expected to grow in the next five years because of the government’s effective policies and incentives for the IT sector.
The five largest startups last year were:
- Airlift ($85 million)
- Bazaar ($30 million)
- Tajir ($17 million)
- Qisstpay ($15 Million)
- TAG ($12 million)
The Securities and Exchange Commission of Pakistan, which oversees non-banking corporations, has also given a legal definition for start-ups. The federal government of Pakistan has also set up special technology zones.
Information and Communication Technology (ICT) Exports Increased
Amid the COVID-19 outbreak in the last two years, ICT exports have increased. Pakistani firms and freelancers have captured the global market demand for tech-related services.From July 2021 to February 2022, Pakistan's state bank released new data that showed that information and communication technology exports rose by 30%.
From the data of the central bank, it is pointed out that in terms of contribution to the economy, ICT has become the top service sector.
ICT exports are growing in all segments, including telecom services, software consultancy, and call centers. Efforts by the government are yielding results. Industry leaders say that the government's policies for the IT sector are working the best, and the government is working hard to help the IT sector through its program, Digital Pakistan.
By witnessing the central bank’s data, the leaders of the IT industry said that the government’s efforts are being reflected in the IT industry. They were of the view that the government’s target of $50 billion could only be achieved if the government gave tax incentives, tax holidays, and other benefits to the IT industry.