In August 2023, Pakistan’s Information Technology (IT) exports reached a total of $235 million, marking a notable increase of 10% compared to the previous month. These exports can be further segmented into Telecom and Computer Services, which saw respective MoM increases of 12% and 9%. These figures indicate a positive trend as August’s IT export inflows surpass the average of the past 12 months, which stood at $218 million.
The MoM improvement in IT exports for August is primarily attributed to the higher number of working days compared to July 2023. However, banking channel assessments suggest that an increase in clearing days impacted the realization of proceeds. Despite this, the realization of proceeds per day remained relatively steady, showing no significant change from the previous month.
A more detailed look at Computer Services reveals that Hardware and Software Consultancy exports experienced substantial growth, increasing by 21% and 18% MoM, respectively, in August 2023. Furthermore, Services Exports (excluding IT) also enjoyed a boost, increasing by 14% MoM, driven by similar factors mentioned above.
On a year-on-year (YoY) basis, IT exports for August 2023 recorded a 3% increase, reaching $235 million. This increase was mainly driven by an 11% YoY growth in Telecom Services and a 1% YoY rise in Computer Services.
Examining the two-month period of FY24, IT exports displayed a 5% YoY increase, totaling $449 million. Additionally, when considering net IT exports (exports minus imports) for August 2023, they increased by 7% MoM and 3% YoY, amounting to $204 million. Over the first two months of FY24, net exports showed a 4% YoY growth, reaching $394 million, in comparison to a 5% YoY increase in the overall IT exports figure.
Breaking down the segments for August 2023, Telecom Services recorded a 12% MoM and 11% YoY growth, resulting in $46 million. Meanwhile, Computer Services saw a 9% MoM increase and a 1% YoY rise, totaling $189 million. These figures collectively indicate a positive trend in Pakistan’s IT exports for the specified period.
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