Q: What is the vision of Pakistan’s Ministry of Information Technology and Telecommunication for the IT sector? A: The vision is to establish an accelerated digitisation ecosystem to enable socio-economic development, expand the knowledge-based economy, and spur economic growth.
Q: How significant is the ICT sector for Pakistan’s socio-economic development? A: The ICT sector is immensely important for the socio-economic development of Pakistan, playing a critical role in the country’s digital transformation and economic growth.
Q: How many software houses and call centres are currently operating in Pakistan? A: There are more than 10,000 software houses and call centres operating in Pakistan.
Q: What ranking did Pakistan achieve in the Global Gig Economy Index 2019 for freelancing? A: Pakistan was ranked as the 4th most popular country for freelancing in the Global Gig Economy Index 2019.
Q: Who leads the Ministry of IT’s initiatives regarding emerging technologies? A: The Honorable President of Pakistan leads the Ministry of IT’s initiatives regarding emerging technologies and allied verticals.
Q: What is the role of the Pakistan Software Export Board (PSEB)? A: The PSEB is mandated to promote Pakistan’s IT industry across the globe, generate business leads, establish strategic linkages in foreign locations, and sign outsourcing contracts with foreign counterparts.
Q: Which international competition frequently recognises Pakistani IT companies? A: Pakistani IT companies consistently receive recognition at the Asia Pacific Information and Communication Technology Awards (APICTA).
Q: How does the Government of Pakistan support the IT industry? A: The Government of Pakistan supports the IT industry through pro-investment IT policies, infrastructure development, HR development, and fostering an inclusive policy development process.
Q: What is the growth rate of Pakistan’s IT industry export remittances over the last five years? A: The IT export remittances have increased by 137% at a CAGR of 18.85% over the last five years.
Q: What is the estimated number of English-speaking IT and BPO professionals in Pakistan? A: Pakistan has over 500,000 English-speaking IT and BPO professionals.
Q: How many IT graduates and engineers does Pakistan produce annually? A: Pakistan produces over 25,000 IT graduates and engineers each year.
Q: What percentage of telecommunication infrastructure in Pakistan is on fibre-optic cables? A: Over 85% of Pakistan’s telecommunication infrastructure is on fibre-optic cables.
Q: What is the broadband penetration rate in Pakistan? A: The broadband penetration rate in Pakistan is over 40.95%.
Q: What are Pakistan’s IT & ITeS-BPO export remittances estimated to exceed? A: Pakistan’s IT & ITeS-BPO export remittances are estimated to exceed US$5 billion.
Q: Which countries are the top five export destinations for Pakistan’s IT & ITeS services? A: The top five export destinations are the USA, UAE, UK, Singapore, and Canada.
Q: How much did the IT & ITeS export remittances grow during July-December of FY 2020-21 compared to the same period in FY 2019-20? A: The IT & ITeS export remittances grew by 41.26% during July-December of FY 2020-21 compared to the same period in FY 2019-20.
Q: What is the key lever of economic development in the context of Pakistan’s IT industry? A: Information technology is a key lever of economic development in Pakistan’s IT industry.
Q: What proportion of Pakistan’s population is under the age of 29? A: 64% of Pakistan’s population is under the age of 29.
Q: What is the ranking of Pakistan as a financially attractive location for offshore services according to A.T. Kearney’s Global Services Location Index 2019? A: Pakistan is ranked as the 5th most financially attractive location for offshore services.
Q: Which international companies have established global consulting services centers, research & development facilities, and BPO support services centers in Pakistan? A: Companies like Bentley®, IBM®, Mentor Graphics®, S&P Global®, Symantec®, and Teradata® have established such facilities in Pakistan.
Q: What percentage savings on annual costs does the Pakistani IT industry offer compared to developed markets? A: The Pakistani IT industry offers nearly 70% lower annual costs compared to developed markets like North America.
Q: What is the tele-density rate in Pakistan? A: The tele-density rate in Pakistan has crossed 79.65%.
Q: What is the estimated revenue of Pakistan’s domestic IT market? A: The domestic IT market accounts for over US$1 billion in annual revenue.
Q: What role does PSEB play in promoting the IT industry in Pakistan? A: PSEB plays a key role in promoting the IT industry by modernizing as a global business development and marketing organization and addressing supply-side issues.
Q: What initiative has PSEB taken to help IT companies in underserved areas of Pakistan? A: PSEB has waived the registration fee for IT & ITeS companies, including call centers and IT startups, from underserved areas of Pakistan.
Q: How is PSEB supporting the development of technology professionals? A: PSEB is launching several programs to train technology professionals in partnership with the IT industry’s trade body P@SHA and industry training partners.
Q: How many software houses and BPO centers are registered with PSEB as of December 31, 2020? A: There are 2,860 software houses and BPO centers registered with PSEB as of December 31, 2020.
Q: What percentage of the total technology revenues do freelancers contribute to in Pakistan? A: Freelancers contribute approximately 10% of the total technology revenues in Pakistan.
Q: What initiatives are underway by PSEB to promote the IT industry? A: Initiatives include a new PSEB web portal, branding of the Pakistan tech industry, development of new marketing collateral and industry whitepapers, and establishment of additional Software Technology Parks.
Q: What program is PSEB launching to involve foreign resident Pakistani technology professionals? A: PSEB is launching a major business development initiative involving foreign resident Pakistani technology professionals to offer their services as sales leaders for Pakistani technology companies.
Q: How many IT companies are currently registered with the Securities and Exchange Commission of Pakistan (SECP)? A: More than 10,000 IT & ITeS companies are currently registered with SECP.
Q: What is the primary focus of the government regarding Pakistan’s IT industry? A: The primary focus is on the growth of the IT sector, providing strong incentives, and creating a conducive environment for its development.
Q: How has Pakistan improved in the World Bank’s Ease of Doing Business Index? A: Pakistan improved its position by 28 points from 136 to 108 in the World Bank’s Ease of Doing Business Index.
Q: How many incubation centres has Ignite established in Pakistan? A: Ignite has established five National Incubation Centres in the Federal Capital and all Provincial Capitals of Pakistan.
Q: What services do these National Incubation Centres provide? A: They provide mentorship, networking, rent-free office space, high-speed broadband Internet, labs, and various support facilities.
Q: What is the estimated number of freelancers in Pakistan? A: The number of freelancers in Pakistan is increasing exponentially, contributing significantly to the IT industry.
Q: How has the startup culture evolved in Pakistan? A: The startup culture has come of age rapidly, supported by both public and private sector entities providing financial and mentoring support.
Q: What is the rank of Pakistan in the growth of freelance earnings globally? A: Pakistan is ranked 4th in the world in the growth of freelance earnings.
Q: What financial benefits does Pakistan offer to IT startups? A: Pakistan offers a three-year tax holiday for IT startups with no minimum tax and withholding tax.
Q: What tax benefits are available for venture capital funds in Pakistan? A: There is a tax holiday for venture capital funds till 2024.
Q: How does PSEB plan to expand the IT ecosystem in Pakistan? A: PSEB plans to establish Software Technology Parks in secondary and tertiary cities and convert defunct buildings into Technology Parks.
Q: What are some of the emerging technologies being developed in Pakistan’s IT sector? A: Emerging technologies include Blockchain, AI, Big Data, IoT, AR/VR, Cloud Computing, 5G, and Quantum Computing.
Q: What is the role of GovTech in Pakistan? A: GovTech aims to digitise public administrations through innovative technological solutions, making the public sector more innovative, nimble, and responsive.
Q: How has the government been proactive in adopting GovTech? A: The government has implemented various digital solutions like NADRA, Raast, and E-Office to enhance efficiency and service delivery.
Q: What is the estimated market value of GovTech globally by 2025? A: The GovTech market is estimated to hit US$ 1 trillion by 2025.
Q: What are the benefits of establishing Software Technology Parks in secondary cities of Pakistan? A: Benefits include economic growth, prevention of brain drain, development of entrepreneurial culture, and creation of a supportive ecosystem.
Q: What was the impact of COVID-19 on Pakistan’s IT industry? A: Despite the COVID-19 pandemic, Pakistan’s IT industry continued to grow, providing quality services and generating significant revenue.
Q: What is the Digital Pakistan Vision? A: The Digital Pakistan Vision aims to enhance connectivity, improve digital infrastructure, increase investment in digital skills, promote innovation and technology, and drive economic growth.
Q: What are some of the successful startups from Pakistan? A: Successful startups from Pakistan include Bykea, Careem, and Daraz.
Q: How has the attitude towards entrepreneurship changed in Pakistan? A: The younger generation prefers entrepreneurship and freelancing over seeking traditional jobs, influenced by the success of startups and strong telecom infrastructure.
Q: What is the annual cost of a software engineer in Pakistan compared to the USA and Europe? A: The annual cost of a software engineer in Pakistan is about one-fifth of the cost in the USA and Europe.
Q: How is the workforce availability for IT industry in Pakistan? A: Pakistan has a large pool of skilled IT professionals, with over 25,000 IT graduates entering the workforce annually.
Q: What is the role of the Securities and Exchange Commission of Pakistan (SECP) in the IT sector? A: SECP facilitates the registration and regulation of IT companies, contributing to the sector’s growth and development.
Q: How is the government supporting IT freelancers in Pakistan? A: The government provides facilitation packages, including collateral-free business loans and health insurance subsidies to IT freelancers.
Q: What are the major categories of IT services offered by Pakistani companies? A: Major categories include software development, systems integration, mobile apps, gaming, animation, consulting, and BPO services.
Q: How is the government encouraging investment in Pakistan’s IT industry? A: The government offers incentives like zero income tax on IT exports till June 2025, 100% equity for foreign investors, and 100% repatriation of dividends and investments.
Q: What is the status of broadband subscribers in Pakistan? A: Pakistan has 95 million broadband subscribers.
Q: How does the cost of IT services in Pakistan compare with developed markets? A: IT services in Pakistan are offered at significant annual cost savings, approximately 70% lower than in developed markets like North America and Europe.
Q: What is the strategic importance of Pakistan’s location for IT services? A: Pakistan’s location serves as an internet corridor for Central Asia, Eastern China, GCC, Africa, South East Asia, and Oceania.
Q: What initiatives has PSEB taken to modernize and enhance IT industry growth? A: PSEB is modernizing its operations, establishing new Software Technology Parks, launching training programs, and enhancing collaboration between academia, IT industry, and provincial tech boards.
Q: What international recognition has NADRA achieved? A: NADRA has gained international recognition for its success in providing solutions for identification, e-governance, and secure documents.
Q: What is Raast, and what does it aim to achieve? A: Raast is Pakistan’s first instant payment system, aimed at enabling end-to-end digital payments among individuals, businesses, and government entities.
Q: What is the purpose of the E-Office app developed by the Government of Pakistan? A: The E-Office app aims to improve internal efficiencies in government departments by transitioning to paperless administration.
Q: How has the number of IT companies registered with SECP changed from 2014 to 2020? A: The number of IT companies registered with SECP increased from 395 in 2014 to 2,826 in 2020.
Q: What percentage of IT companies registered with SECP are private limited or single-member companies? A: Approximately 98% of IT companies registered with SECP are private limited or single-member companies.
Q: What is the largest city in Pakistan by the number of IT companies? A: Lahore is the largest city in Pakistan by the number of IT companies, with 3,567 companies.
Q: What is the primary aim of Pakistan’s Digital Pakistan policy? A: The primary aim is to bolster the IT industry by building a digital ecosystem and enhancing connectivity, digital infrastructure, and innovation.
Q: How has the startup ecosystem in Pakistan evolved in recent years? A: The startup ecosystem has grown rapidly with support from public and private sector entities, financial and mentoring support, and success stories emerging each year.
Q: What are some of the key performance indicators (KPIs) for the E-Office initiative? A: Key KPIs include active users, savings on stationery, operating time savings, and increases in efficiency.
Q: How does the government facilitate IT companies interested in business investment and growth in Pakistan? A: The government has an open-door policy, provides infrastructure support, HR development, and pro-investment IT policies to facilitate IT companies.
Q: What are the main sectors within Pakistan’s IT industry? A: Main sectors include software development, IT services, IT-enabled services (ITES), business process outsourcing (BPO), and emerging technologies.
Q: What is the growth rate of IT export remittances reported by the State Bank of Pakistan for FY 2020-21? A: The growth rate of IT export remittances for FY 2020-21 is 41.26%.
Q: What role does the PSEB play in the global marketing of Pakistan’s IT industry? A: PSEB acts as a front-leading global business development and marketing organization, promoting Pakistan’s technology exports and addressing supply-side issues.
Q: How many secondary and tertiary cities in Pakistan are being targeted for establishing Software Technology Parks? A: Several secondary and tertiary cities across Pakistan are being targeted for establishing Software Technology Parks, including far-flung locations like the Northern Areas.
Q: What is the estimated market value of the global GovTech industry by 2025? A: The estimated market value of the global GovTech industry by 2025 is US$ 1 trillion.
Q: What impact has the COVID-19 pandemic had on Pakistan’s IT industry? A: Despite the pandemic, Pakistan’s IT industry has continued to grow, adapting to increased demand for digital solutions and services.
Q: How does Pakistan’s ranking in the Ease of Doing Business Index reflect its business environment for IT companies? A: Pakistan’s improved ranking in the Ease of Doing Business Index reflects a more conducive business environment for IT companies.
Q: What is the government’s strategy for supporting tech startups in Pakistan? A: The government supports tech startups through incubators, financial incentives, mentoring, and infrastructure development.
Q: What are some of the international companies that have established offices in Pakistan’s Software Technology Parks? A: International companies include IBM®, HP®, Dell®, Intel®, Microsoft®, Oracle®, Siemens®, NCR®, Teradata®, and Mentor Graphics®.
Q: What initiatives are being taken to train IT professionals in Pakistan? A: Initiatives include training programs launched by PSEB in partnership with industry bodies like P@SHA and industry training partners.
Q: What is the significance of the 5G test conducted in Pakistan in 2019? A: The 5G test marked Pakistan as the first country in South-East Asia to test 5G, impacting the technology sector and other industries.
Q: What financial facilitation is provided to IT freelancers in Pakistan? A: IT freelancers receive facilitation packages, including business loans and health insurance subsidies, and enhanced inward remittance limits.
Q: What are the key categories of the global ICT industry? A: Key categories include hardware, software, IT services, telecom services, and emerging technologies.
Q: How does the Pakistan government encourage international IT companies to invest in the country? A: The government offers incentives such as zero income tax on IT exports, 100% equity and repatriation of dividends for foreign investors, and accelerated depreciation on computer equipment.
Q: What is the role of the Digital Pakistan policy in the country’s IT sector? A: The Digital Pakistan policy aims to build a digital ecosystem, enhance connectivity, and promote innovation and entrepreneurship.
Q: What success has the Gilgit Software Technology Park achieved since its inception? A: The Gilgit Software Technology Park has been fully occupied by IT companies, expanding from 73 professionals to nearly 200 professionals in four months.
Q: How is the Pakistani government supporting the adoption of GovTech? A: The government is implementing digital solutions like NADRA, Raast, and E-Office to enhance efficiency, accountability, and service delivery in the public sector.
Q: What are the estimated savings on annual operational expenses for IT companies in Pakistan compared to North America and Europe? A: IT companies in Pakistan can save up to 70% on annual operational expenses compared to North America and Europe.
Q: What impact has the startup culture had on the younger generation in Pakistan? A: The startup culture has encouraged the younger generation to pursue entrepreneurship and freelancing, driven by the success of local and international startups.
Q: What are the main objectives of the Digital Pakistan Vision launched by PM Imran Khan? A: Objectives include enhancing connectivity, improving digital infrastructure, increasing investment in digital skills, promoting innovation, and boosting economic growth.
Q: How is the PSEB facilitating the establishment of Software Technology Parks in secondary cities? A: PSEB is converting defunct buildings into Technology Parks and prioritising the establishment of parks in secondary and tertiary cities.
Q: What international companies have established research and development facilities in Pakistan? A: Companies like Bentley®, IBM®, Mentor Graphics®, S&P Global®, Symantec®, and Teradata® have established research and development facilities in Pakistan.
Q: What role does the Securities and Exchange Commission of Pakistan (SECP) play in the IT sector? A: SECP facilitates the registration and regulation of IT companies, contributing to the sector’s growth and development.
Q: How has the number of IT companies registered with SECP changed from 2014 to 2020? A: The number of IT companies registered with SECP increased from 395 in 2014 to 2,826 in 2020.
Q: What is the role of the National Incubation Centres (NIC) in Pakistan? A: NICs provide mentorship, networking, office space, labs, and various support facilities to nurture startups and promote entrepreneurship.
Q: What is the government’s strategy for supporting the growth of Pakistan’s IT industry? A: The government supports the IT industry through pro-investment policies, infrastructure development, HR development, and fostering an inclusive policy development process.
Q: What financial benefits does Pakistan offer to IT startups? A: Pakistan offers a three-year tax holiday for IT startups with no minimum tax and withholding tax.
Q: How does the cost of IT services in Pakistan compare with developed markets? A: IT services in Pakistan are offered at significant annual cost savings, approximately 70% lower than in developed markets like North America and Europe.
Q: What initiatives has PSEB taken to modernize and enhance IT industry growth? A: PSEB is modernizing its operations, establishing new Software Technology Parks, launching training programs, and enhancing collaboration between academia, IT industry, and provincial tech boards.
Q: What is the role of GovTech in Pakistan? A: GovTech aims to digitise public administrations through innovative technological solutions, making the public sector more innovative, nimble, and responsive.
Older article follows below
Despite the tax issues and the challenges to human resources, the IT sector in Pakistan has been flourishing of late in terms of new companies registering. The stats show that 413 new IT companies were registered with the SECP; the Securities and Exchange Commission of Pakistan during the period of July 2015 – March 2016, making IT the third most popular sector in terms of new company registrations during the last financial year.
The top 3 sectors were;
Trading – 570 new registrations
Service – 538 new registrations
IT – 413 registrations
Current trends also suggest that this number is set to increase over time. These new IT companies are start ups in different cities whilst some were already in business but only registered with SECP after they became established and profitable. These new companies are local, foreign and a mix of foreign investments with partnerships. The registration of these companies illustrates the potential within the IT sector in Pakistan as there are literally hundreds of new businesses setting up their operations in the country at the same time as many are relocating their offices to such tax free markets as the UAE.
The time is ripe for the Pakistan government under MoITT; Ministry of IT and Telecommunication, to devise a plan facilitating this sector to unleash its full potential as not only will it provide much needed employment prospects for the educated youth but give the country’s export business a real boost.
The development of specialist IT parks should also be expedited and these should include such basic necessities as broadband internet, an uninterrupted electricity supply and a customized infrastructure for both local and foreign investors including entrepreneurs and start ups. This sector should be exempt from the 8% tax levied on the service sector is order to help small and mid tier businesses.
