Business Desk 
Dec 04, 2024
Pakistan’s IT industry is losing over $1 million every hour due to frequent internet shutdowns, according to Pakistan Software Houses Association (P@SHA) Chairman Sajjad Mustafa Syed.
This growing sector, which contributes significantly to the economy, is being hampered by unstable infrastructure and restrictive policies.
The country's IT industry has grown by 40% in recent years, achieving $3.2 billion in exports. Around 55% of these exports go to the US and 20% to Europe.
However, achieving the government’s $15 billion IT export target depends on stable internet access, a favourable tax policy, and skilled workers.
Syed emphasised that investing in market access yields substantial returns, with $1 of investment generating $49 based on data from the past three years.
Frequent internet shutdowns have disrupted 99% of IT firms and caused significant financial losses. Syed highlighted a recent case where a call centre faced a $2 million penalty due to a disruption.
Such outages not only hurt businesses but also damage the country’s reputation in the global IT market.
The chairman also addressed the sector's taxation issues. He urged the government to reduce taxes on revenue and offer incentives to promote growth and attract foreign investment.
He also called for a more secure and industry-friendly VPN policy to protect data and enhance the IT sector's productivity.
Syed pointed out that branding and marketing are vital for unlocking the full potential of Pakistan’s IT industry. Without these efforts, the sector will struggle to reach its ambitious targets. P@SHA continues to advocate for policy reforms to ensure sustainable growth.
