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Pakistan’s October 2023 exports saw a 13.5% increase, reaching a total of $2.7 billion, according to the Pakistan Business Forum (PBF). Additionally, the trade deficit decreased by 4.5% during the same period. PBF’s Vice President Chaudhry Ahmad Jawad highlighted that the agriculture sector experienced a remarkable growth of 73% in October, with significant increases in rice and sesame seed exports. This diversification in exports showcases the strength of Pakistan’s agricultural industry.

Jawad emphasized the need for Pakistan to focus on expanding its services exports, especially in information and communication technology (ICT), in order to reduce the balance of payment deficit. He pointed out that India’s ICT exports surpassed $140 billion in the fiscal year 2022-23, doubling in the last five years. In contrast, Pakistan’s ICT exports peaked at $2.6 billion in the fiscal year 2021-22, but have remained stagnant since then.

The availability of skilled labor is identified as a major difference between Pakistan and India’s ICT sectors. India’s emphasis on technology and engineering education has contributed to its success, whereas Pakistan’s education standards have declined. Although correcting this situation may take time, Jawad believes Pakistan still has the potential to grow its ICT sector.

Jawad noted that IT companies in Pakistan often complain that many IT graduates lack the necessary skills to contribute to export generation. To address this issue, he suggested offering crash courses to equip graduates with the required skills.

According to Jawad, the PBF believes that Pakistan has an abundance of talent, but the technology sector is not creating enough demand, making it challenging to attract business to the country. Furthermore, there are difficulties in remitting money outside Pakistan, which discourages companies from growing domestically. The State Bank of Pakistan’s efforts in 2020 positively impacted growth for the following two years. However, last year’s balance of payment crisis eroded confidence, and companies are now striving to keep their dollars abroad. This issue requires government intervention.

A PBF official expressed encouragement over the caretaker IT minister’s objective to increase ICT exports to $10 billion and bring PayPal and Stripe payment gateways to Pakistan. However, exporters currently face limitations due to the country’s chronic dollar shortages, and the State Bank of Pakistan does not permit remittances within existing limits. The official highlighted the need for the finance division to address this situation.

Source: [Pakistan Today](https://www.pakistantoday.com.pk)