Pakistan’ total IT industry revenue crossed USD 2 billion in FY 05-06 and total exports crossed USD 1 billion in the same period measured using a methodology developed by WTO-IMF, which is also used by other countries like India in reporting the IT Industry size. Growth in exports each of the last three years has been around 50% while the domestic market has grown at 33% per year.
“The study shows that Pakistan is now on the world IT map and more international customers can feel comfortable in outsourcing work here” stated Mr. Ashraf Kapadia, President Pakistan Software House Association (PASHA) & MD of Systems Limited, a leading IT export company. These benchmarks were established following preliminary studies undertaken by PSEB and have been fully endorsed by the PSEB Board of Directors that includes President PASHA and another leading IT industry CEO and also by other leading companies. More exhaustive studies in collaboration with the Gartner Group, State Bank of Pakistan and Statistics Division are underway.
“Though the IT industry has made significant strides over the last few years, we are future-focused on the immense potential that yet needs to be realized. We must work hard with other Government departments to continue to support the IT industry in areas like Human Capital Development, IT Park Construction and Marketing” stated Mr. Yusuf Hussain, MD, PSEB. A breakdown of the IT industry is as follows:
Pakistan IT Exports
| Mode |
Description |
IT Exports |
| 1 Cross Border |
Revenue from direct export |
USD 150 million
|
|
2 Consumption Abroad
|
Revenue from sales to multinationals, multi-laterals and foreign missions within Pakistan
|
USD 200 million
|
|
3 Commercial Presence Abroad
|
Overseas revenue of Pakistani owned companies
|
USD 450 million
|
| 4 Temporary Movement |
Annual salaries of non-immigrant IT workers
|
USD 250 million
|
| Total IT Exports |
|
USD 1.05 billion
|
Pakistan Domestic IT Market
|
Area
|
Revenue
|
|
PC/Laptop/Servers
1,000,000 new and used CPU @ USD 600 per CPU
|
USD 600 million
|
|
Peripherals
1/3 of computer sales
|
USD 200 million
|
|
International Software Vendors
|
USD 150 million
|
|
IT Services (other than Foreign Entities)
|
USD 200 million
|
|
Total Domestic IT Revenue
|
USD 1.15 billion
|
Country Comparison
A country comparison with India appears below. Fiscal year for Pakistan is taken as July 1, 2005 to June 30, 2006, while for India it is taken as April 1, 2005 to March 31, 2006. HR and bandwidth levels are for June 30, 2005. It may be noted that number of IT personnel employed are an indicator of IT service revenue. Salaries in Pakistan are 30% less than that of India. Also IT exports — including programs, documents, audio, video, data, and commands – pass over the Internet so international internet bandwidth usage is also an indicator of IT services exports.
| Country |
Estimated Global IT Revenue |
IT Personnel |
Internet Bandwidth Usage |
|
Pakistan
|
USD 2 billion
|
75,000
|
600 MBS
|
|
India
|
USD 36 billion
|
965,250
|
6.21 GBS
|
|
Ratio
|
1:18
|
1:12.87
|
1:10.35
|
|