The IT and IT-enabled Services (ITeS) marketplace offers lucrative opportunities for developing countries to join the ranks of the developed world. The scale and pace of growth in this sector is faster than in any other industry, and a number of developing countries are attempting to emulate the success enjoyed by countries such as China, Thailand and India.

Future IT Tower KHI
The Government of Pakistan has been proactively developing the IT sector in Pakistan since the last few years. A few of the incentives offered include tax exemption till 2016, establishment of IT Parks with low rent, foreign ownership of equity invested in IT and 100% repatriation of profit allowed to IT companies.
State Bank Reporting Earnings | Estimated Total IT Industry Export Revenue |
Estimated Total IT Industry Size |
US$ 116m | US$ 1.4b | US$ 2.8b |
Pakistan’s IT industry has been rising steadily since the last three years. A marked increase in software export figures are an indication of this booming industry’s potential.
STATISTICS OF THE PAKISTANI IT/ITES INDUSTRY (Link)
Total number of IT companies registered with PSEB | 1306 |
Number of substantial IT companies region-wise breakup |
445 Karachi 351 Islamabad/Rawalpindi 426 Lahore 84 Others |
Total number of foreign IT and telecommunication companies working in Pakistan | 60 |
Number of CMMI-assessed companies | One CMM Level 5 company, one CMMI Level 5 company, three CMMI Level 3 companies and sixteen CMMI Level 2 companies |
Total industry size | US$ 2.8 billion (WTO-prescribed formula) |
IT and IT-enabled services exports | US$ 1.4 billion (WTO-prescribed formula) |
Percent growth in exports over the last one year | 61% |
Number of IT graduates produced per year | Approximately 20,000 |
Export targets for the current fiscal year 2007-2008 | US$ 162 million |
Number of universities offering IT/CS programs | 110 |
Number of IT professionals engaged in export-oriented activities (software development/call centers etc.) | More than 15,000 |
Total number of IT professionals employed in Pakistan | 110,000 |
Total IT spending in the fiscal year 2005-2006 | US$ 1.4 billion |
Total space utilized in IT & Software Technology Parks | Eleven IT Parks covering an area of 750,000 sq ft |
State Bank Reporting Earnings | Estimated Total IT Industry Export Revenue |
Estimated Total IT Industry Size |
US$ 116m | US$ 1.4b | US$ 2.8b |
The World Trade Organization (WTO) lists Mode 3, revenue generated by commercial offices overseas, and Mode 4, compensation received by temporary workers who have traveled abroad, as export revenue streams which must be included in trade revenue calculation. There is also strong evidence to suggest that other countries, such as India, in fact employ global services export figures when reporting or estimating revenue.
The following table describes the four WTO modes for export-in-services recognition. The need for the four-mode model arises because trade in services is much harder to monitor than trade in physical goods. Physical goods pass through air, sea or land ports, and are accompanied by detailed financial and other documentation. Services trade, on the other hand, can be transacted over the Internet, through post, or through travel of personnel, with revenue flowing into company or personal accounts, which can exist anywhere in the world.
Following are some of the renowned IT associations of Pakistan:
PAKISTAN SOFTWARE HOUSES ASSOCIATION (PASHA)
Pakistan Software Houses Association (PASHA) was formed in the last quarter of 1992 by nine software houses. By 2003, PASHA had grown to over 200 members. Its main objective is to promote and develop the software and services industry in Pakistan and to protect the rights of its members.
The software and services industry is growing at an enormous pace in Pakistan and PASHA, along with its members, is playing an important role in making their presence felt, both nationally and internationally.
COMPUTER SOCIETY OF PAKISTAN (CSP)
The Computer Society of Pakistan (CSP) is the national organization of Information Technology professionals in the country. It was established in 1973 to promote the use of computers, increase general awareness among the public and to look after the professional interests of the IT personnel in the country.
The Computer Society of Pakistan sponsors students to take part in the international software competitions in various countries as well as organizes various programs for the youth. The current membership of the Society is over 2000 professionals working in over 350 public and private sector organizations.
OPEN Chapters have boards comprising the most successful Pakistanis in the areas of finance, technology, telecommunications, biotech and consulting in North America. OPEN regularly organizes events pertaining to current issues in business and entrepreneurship. In addition to OPEN’S highly successful Board of Directors, OPEN is comprised of executive committees of seasoned entrepreneurs and professionals from a multitude of industries and professions that help plan, coordinate, and execute OPEN’s mission.
Founded in 1992, in Silicon Valley by a group of successful entrepreneurs, corporate executives, and senior professionals with roots in the Indus region, the organization today has over 10,000 members across 44 chapters in 9 countries.
Dedicated to the virtuous cycle of wealth creation and giving back to the community, TiE’s focus is on generating and nurturing our next generation of entrepreneurs. In order to achieve this, the organization has built programs to energize and inspire its constituencies. Prime example of this is their flagship event TiEcon, the largest conference for entrepreneurs worldwide.
The one constant guiding the evolution of TiE has been its philosophical framework. It has kept the vision and decisions of TiE’s leadership true to its basic beliefs that wealth creation and giving back to society are invaluable human endeavors, and that an open, inclusive and forward-looking organization is the right vehicle in which to reach their objectives.
ACCO provides valued services, at both individual and organization level, encouraging the promotion of best practices and professional standards.
ACCO is established as a pivot for building new memberships with other professional bodies, government departments, overseas organizations and other agencies who have an interest in the successful development of contact centers, organizing the said conference is evidence to this commitment.
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PAKISTAN COMPUTER ASSOCIATION (PCA)
Pakistan Computer Association (PCA) was established in December 2000 as an autonomous, non political, non partisan, non-profitable and service oriented organization. The Computer Association has been formed with the involvement of professionals, specialists, manufacturers, institutions and the related organization of Computer and Information Technology within the country.
The info presented is great. We progressed so much and its never accepted. Hoping to beat the indians some day!
Good to know that our neighbours are doing good and picking up well in the industry. But catching up with India in the industry in near future is as distant as India catching up with China in GDP. If we look at the data which is 2 years old. i.e 2007, Indian IT industry size was 47.8 billion USD. (http://en.wikipedia.org/wiki/Indian_IT_industry) I am not sure but looking at the increasing chart it should have crossed 60 billion USD by now in 2009.
Yeah right Pakistan will sure catch up with India.
btw one single IT company like TCS,Wipro,Infosys has revenues of USD 4billion+.
Overall our IT+ITES+H/W Industry is ~100billion USD of which exports are around 73 billion USD.
So u have a lot of catching up to do.
But I welcome any competition cause that is what keeps us on our toes and makes us strive harder.
wow i am impressed to see the success of pakistan’s I.T industry within such a short span of time. An export of $2.8 billion is impressive but certainly not enough for a nation of 170 million people.
Their industry is growing at a rate of 58 percent annually and more report at :
http://www.pseb.org.pk/item/human_capital
suggest, that their target of $9 billion in 2010 can be achieved in overall I.T Export. I wish them good luck.
Well it’s good to know that pakistan is catching up with india fast in I.T industry. Although india is ahead at the moment and our industry is much bigger but still pakistan is a nation of great talents and they have the strength to achiev a lot at a short period of time.
wish India & Pakistan best of luck…
cool… as india, pakistan and china emerges as leaders in the field of I.T and softwares, i have no doubt that Asia will be the powerhouse of I.T industry in the coming years.
In my opinion we need to work hard for our nations, if we achieved this then ultimately we able to lived with high standards of life as west. i visit Sweden in 2009 and see that how Swedish people lived.
So work hard for your nations.
if all of us put our full efforts, then may be we may attain our targets as nothing is impossible in this world.
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