Pakistan eyes $25 billion IT exports in three years, 5G rollout despite roadblocks

Prime Minister Shehbaz Sharif speaks during a meeting with delegation of VEON Group in Islamabad on November 8, 2024. (Photo courtesy: PMO)

• Pakistan’s IT exports face significant challenges due to Internet connectivity issues stemming from firewall installations to regulate content
• In August, the Pakistan Software Houses Association said the country’s economy could lose up to $300 million due to Internet disruptions

ISLAMABAD: Prime Minister Shehbaz Sharif on Friday reaffirmed Pakistan’s ambitions to boost its information technology (IT) exports to $25 billion in the next three years and to roll out 5G Internet services, despite challenges from firewall installations.
The Pakistan prime minister expressed these plans during his meeting with a delegation of VEON, an Amsterdam-based multinational telecommunication and digital services company, led by its chairman Augie K. Fabela, to discuss his government’s efforts to “develop and promote” the telecommunications sector, according to Sharif’s office.
The South Asian country’s IT exports face significant challenges due to Internet connectivity issues stemming from firewall installations to regulate content and social media platforms that hinder the ability of local tech firms to communicate with international clients. This results in delayed deliveries, loss of business opportunities and a tarnished reputation for Pakistan’s IT industry, ultimately stifling growth and costing millions of rupees in losses.
In August, the Pakistan Software Houses Association (P@SHA) said the country’s economy could lose up to $300 million due to Internet disruptions caused by the imposition of the firewall. However, State Minister for IT Shaza Khawaja repeatedly denied the use of firewalls by the government as a form of censorship.
“We are determined to achieve the target of increasing IT exports from Pakistan to 25 billion dollars in the next three years,” Sharif was quoted as saying by his office. “Steps are being taken to introduce 5G Internet services for faster and reliable Internet services in Pakistan.”
Sharif said the rollout of 5G services would make it possible for his government to achieve the vision of “Digital Pakistan.” He said the telecommunications sector would play an important role in promoting a cashless and digital economy, praising the work of a VEON subsidiary, Jazz Group, and expressing his government’s willingness to promote IT, digitization and artificial intelligence (AI) in Pakistan.
The visiting delegation appreciated the Pakistani government’s efforts to stabilize the economy and termed Pakistan an important country for investment in the IT sector, according to Sharif’s office.
Pakistan recorded $298 million in IT exports in June, up 33 percent from the year before. During the fiscal year that ended in June, Pakistan recorded overall IT exports of $3.2 billion, up 24 percent from $2.5 billion in the previous year.
The South Asian nation has lately encouraged its IT sector and facilitated collaborations with firms in several countries, including Saudi Arabia, China and Qatar, to boost its IT exports.
However, IT-related associations and businesses this year raised alarm over slowing Internet speeds as the federal government moved to implement the nationwide firewall to block malicious content, protect government networks from attacks, and allow authorities to identify addresses associated with what it calls “anti-state propaganda.”
In August, the Pakistan Business Council warned that frequent Internet disruptions and low speeds caused by poor implementation of the firewall had led many multinational companies to consider relocating their offices out of Pakistan, with some having “already done so.”