According to Gartner IT data, Pakistan’s IT exports increased by 9% in first eleven months of 2022 , while other countries in global index mostly remained stagnant throughout the year.
Technology and communication sector Of Pakistan performed better than its rival countries in 2022, according to a new report from Topline Securities.
Because it is the most relevant comparable index, Information Technology sector of Pakistan was compared to the MSCI AC Asia Pacific Information Technology Index. It is a market capitalization-adjusted index that includes large and mid-cap securities from five Developed Markets (DM) and nine Emerging Markets (EM) countries in the Asia Pacific region.
Pakistan is included in the MSCI AC Asia Pacific Information Technology Index. Australia, Hong Kong, Japan, New Zealand, and Singapore are among the DM countries in the index, while China, India, Indonesia, Korea, Malaysia, Pakistan, the Philippines, Taiwan, and Thailand are among the EM countries.
According to the report, Pakistan’s IT sector fell by 22% (in terms of USD), while the MSCI AC Asia Pacific Information Technology Index fell by 33% in 2022. The sector’s performance in terms of PKR remained constant throughout the year.
Systems Limited (SYS), a Pakistani technology company that provides mortgage, apparel, retail, BPO, and other services, was primarily responsible for these figures. In 2022, the company’s market capitalization increased by 4% in USD terms and 34% in PKR terms.
In September 2022, the company’s earnings increased by 103 percent in PKR and 60 percent in USD terms. TRG, PTC, AVN, and Airlink were the other companies in the top five list, following SYS. The total market capitalization these companies declined in 2022 by up to 60 percent.
According to Gartner IT data, Pakistan’s IT exports increased by 9% in the first eleven months of 2022 (11MCY22), while other countries in the global index mostly remained stagnant throughout the year.
According to Topline Securities, Pakistan’s technology sector will continue to outperform its competitors due to its low base, availability of cheap labour, and expansion into the Middle East, where local companies’ economies of scale allow them to win smaller ticket-size projects. These contracts are not feasible for the region’s larger IT service providers.
This enables local businesses to hire less expensive resources to deliver their services. These resources are approximately 35–40% less expensive than in other Asia-Pacific countries. As a result, Pakistan’s IT sector is expected to grow by 15 to 20 percent in the next 3 to 5 years.