IT industry flourishing with stable growth

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KARACHI: Information and Technology (IT) has been flourishing with outstanding pace as number of registered companies, foreign investment and exports have shown handsome growth in the financial year 2011-12.

The number of IT companies registered with Securities and Exchange Commission of Pakistan recorded at 260 in FY12 with considerable investment and advanced technology.†The IT sector is ranked at number 4 at overall sectors following by Trading, Services and Hajj and Umra sectors. It showed registration of 209 companies in the financial year 2010-11.

The companies registered are possessing expertise in different areas including software development (products and services), mobile apps, gaming and graphics, computer networking and hardware systems.

In 2011-12, the software development and IT services sector witnessed handsome growth in Foreign Direct Investment (FDI) inflows that recorded $45 million by State Bank of Pakistan.

The FDI in software development showed 12.8 percent yearly growth to reach $16.7 million besides IT services witnessed surge of 121.6 percent FDI on yearly basis increasing to $28.2million

Pakistanís companies based in foreign companies continued to shift their setup in Pakistan whereas foreign investors have made investment in the local companies owing to their hi-tech value added services in financial and services sector.

As far as exports of IT concerned, it showed a growth of 13 percent which was not called as impressive but on the rise despite economic slowdown in the exporting countries mainly US and EU countries.

In 2011-12, the exports increased to $247 million compared to $217 million in 2010-11. The overall exports crossed one billion dollar if it is calculated as per WTO formula.

The local companies continued their exports of products and services in USA and EU despite the demands and their earnings were dropped. Also, local companies are expanding their businesses in African countries mainly in IT services for financial, services and urban infrastructure. IT industry has been showing a tremendous performance in terms of fastest business expansion, revenues growth and employment generation in the short period of time.

This is evident as 24 companies offering software services and products, computer networking and development solutions are leading the Pakistan 100 business index.

Courtesy: Daily Times

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