The government has set a 3.5% GDP growth target for the fiscal year 2023-2024. Most experts agree that this GDP (Gross Domestic Product) rate represents an economic safe zone. What lies ahead for the IT sector, though, is what matters most.
The economic overview has suggested for the past 20 years that yearly GDP growth exceeding 2.5% may be responsible for a possible 0.5% decline in unemployment. This formula is a reliable technique to both raise the pace of economic growth and lower the unemployment rate.
The current economic situation of the nation urgently calls for a sustained GDP rate as well as many employment prospects; this is where Pakistan’s IT sector comes into play. It took our country five years to come to terms with the industry as a budding sector that may support our financial stability. Since then, our sector’s players have worked hard to place the sector on the radar of the world’s tech community.
Only 10% of our IT graduates are employable, which is concerning given the large number of IT firms that are springing up in the nation as a developing tech player in the Indo-Pacific region. In Pakistan, some 300 businesses are established each year, but only a small number of them are successful.
A successful firm faces a number of obstacles that prevent it from growing. And this puts a lot of pressure on business moguls; it’s more like a plea for help in order to prevent a collapse in the future.
Going back to the forecasts for FY23–24, the tech industry is anticipating a comprehensive package that is rumoured to include a fixed tax structure that is specially suited to its needs. Furthermore, it offers unique incentives for new businesses to encourage entrepreneurship and promote leadership change in the IT industry.
Benefits of the Mega Incentive Package include the establishment of IT training zones, the provision of specific subsidies, and trade promotion through the application of contemporary technology. Export growth is another challenging objective for the development of the IT sector.
In order to establish Pakistan as a significant player in the global IT environment, this aim is crucial. What matters most right now is how the current participants can work together to achieve a single objective.
The present IT budget directly affects six major areas: fiscal growth, export growth, employment opportunities, industrial growth, investment opportunities, and human capitalization. Nearly all of these relate to how our economy and culture have evolved.
We need industry executives to take the lead when we discuss issues like soaring export revenue, employment, business setup, investments, and human capitalization. We require a methodical, meticulous approach to use these resources with purpose in order to do honour to all the resources and reforms offered by the government.
Pakistan now has a number of incubators, seven of which were established by the government. These incubators give access to grants and investors, as well as assistance with commercialization, networking opportunities, and mentoring for aspiring business owners. Incubation culture is also crucial in developing a comprehensive strategy for human capitalisation. This furthers workforce transformation by allowing contractors to launch microwork platforms that help larger organisations in the industry by producing billions in revenue as well as opening up job chances for qualified staff.
From a larger perspective, this will have a negative impact on the development of newly developing subsectors, such as startups, the freelancing market, and the e-commerce business as distinct verticals. These verticals’ contributions will have a direct impact on the nation’s socioeconomic status. Additionally, by utilising IT-friendly reforms in the nation, industry leaders will be able to pitch and partner with tech giants like Apple, PayPal, Google, Amazon, and others to enter the market, ultimately resulting in the growth of the industry and strengthening our position in the global tech ecosystem.
