Better internet connectivity has offered up new opportunities for Pakistan’s young. These options enable young freelancers to support their families financially.
Pakistanis are thriving and competing with global talent in a variety of settings, from technology corporations in large cities to remote workers in rural using 4G internet. As of 2024, our freelancers rank fourth internationally, with over 400 million annual remittances to Pakistan, and technology firms generate more than $2.8 billion annually, employing over 0.6 million people.
The rise of the digital economy and potential is a bright spot for Pakistan’s economy, which has struggled to expand its conventional export segments. Outsourced centers for international corporations, e-commerce, game creation, and business process outsourcing are Pakistan’s top digital exports.
Pakistan’s software and technology export growth is crucial for Pakistan’s future to create employment and business possibilities for its youth while also earning valuable foreign money for With over 25% annual growth over the last five years, maintaining this momentum requires consistent policy, investment in skill development, and good branding of Pakistan as a major technology location.
However, policy inconsistency continues to pose a significant risk to this expansion. Inconsistency has sadly been the only consistent pattern over the last five years, ranging from the revocation of promised tax breaks to difficulties such as internet firewalls and VPN denial.
These moves have shaken the faith of both the local sector and international business executives that rely on Pakistan for back-end operations.
VPNs are utilized in business and corporate settings to gain access to corporate networks due to security concerns, as these networks cannot be accessed from outside. Many businesses provide their employees with VPN access to their network since corporate data cannot be shared outside the network due to confidentiality, privacy laws, and data security concerns.
Similarly, many international websites, banks, and payment gateways block and restrict Pakistani access because they consider Pakistani traffic and users to be a concern. VPNs are used by freelancers and remote workers to gain access to business networks and websites.
Internet speed and latency are significant factors in many corporate applications. Online meetings are essential for consumer contact and sales. Many firms phone customers to sell and give their products and services.
Local businesses offer products, services, and e-commerce websites where, rather than giving services to others, they develop their own brands and sell both locally and globally. In the digital age, brand building entails using social media to contact your customers.
This also gives Pakistanis the possibility to reach worldwide audiences, which was previously difficult while using traditional media outside. These brands are crucial to the long-term growth of our economy, as we transition from a services to a product-based economy.
Disruption to social media is generating problems for these firms since their customers are having difficulty using social media. Many enterprises who only sell to customers in other countries via social media are also experiencing issues since they are being prohibited.
The only option to access VPN is now to be whitelisted, which is incredibly slow, complicated, and unattainable for many small firms because they are not registered with the Pakistan Software Export Board, which is a necessary criterion for registration.
With over 0.6 million IT workers in Pakistan, our authorities are approving approximately 200 applications each day. This is concerning in an industry where work moves quickly. VPNs are blocked without warning, and the internet slows down unexpectedly.
Our politicians and implementers must see that we cannot continue on this path as a nation. With a current growth rate of 25 percent per year in information technology exports, we aim to increase our exports to more than $9 billion.
We must recognize that this cornerstone of the economy is crucial to our future. These digital workers are growing gloomy as a result of the approach and methods used in implementation. This youthful IT talent is in high demand in Europe, the Middle East, and Japan, with recruiters snatching our talent to power their digital economy goals.
To ensure Pakistan’s continuing progress, fast and decisive action and leadership are required. Policymakers must prioritise a stable regulatory environment, and implementers must take great care to ensure ease of doing business, uninterrupted internet access, and digital infrastructure growth to meet our growing demands. Collaboration and private-sector participation in developing these goals are critical to generating growth in our technology sector.
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