The scope of Information and Communication Technology in promoting Pakistan Economy

Information and Communication Technology (ICT) has enormous potential to boost a country’s economic growth by increasing labor and capital productivity, enhancing governance effectiveness, and facilitating better access to goods and services for all.

ICT sector of Pakistan’s economy is booming because it is helping to boost other industries, such as digital health and e-commerce while providing valuable export earnings for Pakistan. With ICT-based innovations, businesses can reach new markets, increase profits, scale, and broaden their customer base. IT services play an essential role in producing and delivering a wide range of other services ranging from financial to transportation to insurance to royalty.

The majority of Pakistan’s IT sector exports are made up of telecommunications and computer services. Total exports of computer services in 2018 totaled $ 755 million, which was at its highest level during the 2014-18 period. On the other hand, Telecommunications services exports peaked in 2014 at $ 428 million and fell to $ 310 million by 2018, respectively. In addition, the IT sector is bringing in $1.2 billion in domestic income.

IT sector exports of Pakistan (Million $)

Description	2014	2015	2016	2017	2018
Telecommunication services	428	302	343	354	310
Computer services	383	487	530	661	775
Total	811	789	873	1005	1085

Source: International Trade Center

Payoneer’s report on the global gig economy stated that Pakistan had seen a 42% increase in freelancers since 2018. 90% of Pakistanis under the age of 35 are turning to freelance to make a living. It’s also worth noting that as the number of women freelancing grows, so does the wage disparity between men and women. Due to the more significant number of opportunities available to women, freelancing affords men and women an equal playing field.

According to a recent report, over half of Pakistan’s freelance workers are in their twenties and thirties. As a result of this growth, the State Bank of Pakistan has increased the monthly payment limit for freelance computer and information services from $ 5,000 to $ 25,000. Foreign exchange flows can be received through proper banking channels, which will increase their value.