PAKISTAN: Recently, internet slowdowns and disruptions to cellular services brought Pakistan’s IT industry into the spotlight. It is evident that the sector has required attention for a long time, despite the usual rhetoric from official sources seeking to calm concerns. Let’s examine the situation in greater detail.
In the fiscal year 2023-2024, Pakistan’s information technology and IT-enabled services (ITeS) export remittances reached an all-time high of $3.223 billion. This is an incredible growth of 24% year-over-year, which is especially noteworthy given that the country’s policies have not yet fully recognized the sector’s potential.
While the achievement merits praise, it also highlights the urgent need for essential infrastructure development and a strategic roadmap for the IT industry.
A plan of action Picture a Pakistan where the IT industry emerges as the primary source of dollar inflows and its economic woes begin to recede. As its tech-driven exports bring in much-needed foreign exchange, a nation once burdened by economic hardship stands tall. Its young minds’ inventiveness and the strength of its digital workforce turn challenges into opportunities and turn prosperity into a wheel.
Does it sound like a fantasy? It is not required to be.
Pakistan’s food, energy production, and talent will require more attention given the country’s population growth of 2.55 percent annually. The country needs money to meet these demands, but here’s the catch: It must be foreign exchange that does not lead to debt. We already have too much debt, and adding more would only make the situation worse.
IT exports come into play at this point. The freelancing community, software companies, and the technology industry as a whole have all seen steady growth in recent years. Despite rumors of a slowdown, the sector’s potential as an economic powerhouse cannot be denied.
As a tech entrepreneur, I’ve seen Pakistan’s youth’s raw talent, but it needs to be used in a meaningful way. Even though youth acquire IT skills online through YouTube videos or other learning platforms, they frequently fail to close deals, secure gigs, and garner favorable reviews that translate into significant earnings.
For instance, Pakistani freelancers with fewer than 50 reviews on platforms like Fiverr and Upwork outnumber those with more than 50 reviews. As a result, there is a gap in earnings.
The gap between academia and industry in the IT sector is another issue. This gap will only widen in the future unless immediate remedial measures are taken, given the tech industry’s exponential rate of change.
Simple soultions However, there is reason for optimism. Pakistan’s freelance market is about to experience a huge opportunity as India slowly becomes more expensive for Westerners.
However, we have a long way to go. In comparison to the global average of 1.7 percent, Pakistan’s freelancers contribute only 0.4 percent of GDP. We should strive to outpace that average, not fall behind it, given Pakistan’s need for dollars. It’s conceivable. Gender inclusivity, which has the potential to significantly advance the country’s progress by increasing women’s participation, is one key to unlocking this potential.
Keep in mind that high taxes are another issue. They are not only pinching their pockets, but they are also driving Pakistan’s brightest computer science graduates out of IT companies. Instead, many people are opting for the freedom of freelance work because it promises better pay and less financial stress.
The fix? a change in policy that encourages both IT companies and freelancers to increase exports. However, once more, that is only one piece of the puzzle.
In a study we carried out, we discovered that even top graduates and IT engineers from CS programs fall short in soft skills. They are unable to communicate in an environment where teamwork is essential, which hinders their growth due to their lack of these skills. Their lack of communication skills also distracts from their technical abilities.
Imagine contacting an IT professional who, despite possessing technical proficiency, is unable to explain the solution. Sound familiar?
Interpersonal finesse frequently constitutes the core of the issue. Despite their importance, soft skills are frequently neglected in academic coursework. Additionally, this must change.
The need to cultivate these skills among professionals becomes increasingly crucial as Pakistan’s IT sector expands at a rapid rate. This is an amazing chance that needs to be taken advantage of. Unprecedented growth and innovation can be achieved by giving people the tools they need to effectively sell their ideas and skills, boosting their confidence at networking events, and empowering them to have meaningful conversations.
The IT ministry needs to lead in this area. Until an effort is made by the institution, none of this can occur. Initiatives that assist in establishing links between industry and academia must be championed by policymakers.
Even though there are a lot of IT graduates, many of them have trouble finding work because they don’t have the modern training and critical thinking skills they need to succeed in the fast-paced digital economy of today. The outdated educational models that rely on rote memorization need to be dismantled. Instead, work with industry professionals to develop a dynamic, creative, and innovative curriculum. Most importantly, for supporting remote operations, especially in sectors that rely on work-from-home and online learning, reliable internet access and a robust IT infrastructure are non-negotiable.
A concerted effort to fill these gaps is essential if Pakistan is to realize its full potential. The nation can transform its IT sector into a powerhouse that not only competes on the global stage but also drives socioeconomic progress for future generations through collaborative partnerships and a commitment to fostering a reliable digital landscape.
The prospects for a flourishing digital economy and Pakistan’s IT industry are in jeopardy.
