Govt policies are barring investment and growth in IT sector says,SAP Pakistan

SAP Pakistan Country Managing Director Saquib Ahmad while speaking at a round table conference on ‘Digital Transformation and Cloud Migration’ on Wednesday that, “IT exports hold high potential for notable growth going forward, but the existing policies remain a hindrance.”

The businesspeople believe the IT sector holds high potential to emerge as a leading export earner and can help fix the ongoing balance of the international payment crisis.

“IT is still one of the top five export-earning sectors in Pakistan at present,” said SAP Pakistan Country Managing Director Saquib Ahmad.

Pakistan’s IT export stood at $1.33 billion in the first half (Jul-Dec) of the current fiscal year 2023 – 2% higher than the $1.30 billion earned in the same period last year.

As per details, the government is not allowing foreign IT firms to repatriate profits to their headquarters abroad amid a drop in foreign exchange reserves. “This is hurting foreign investors and blocking the flow of new foreign direct investment (FDIs) into the country,” said Ahmad.

Pakistan is facing a crisis of trained human resources despite hosting huge talent nationwide, highlighted the SAP MD.

“Change management (mindset) is the biggest hurdle for digital transformation across the world, including Pakistan. Employees feel insecure about their jobs and, hence, are reluctant towards digital change,” said Ahmad.