Pakistan's Tech Exports Exceed $1.5 Billion in First 9 Months of Fiscal Year 2020-21
Pakistan's technology exports are continuing their growth trajectory, soaring 44% in the first 9 months (July-March) of the current fiscal y...
Pakistan's technology exports are continuing their growth trajectory, soaring 44% in the first 9 months (July-March) of the current fiscal year 2020-21 to reach $1.512 billion.
 |
| Pakistan Exports July20-Mar21. Source: State Bank of Pakistan |
Tech exports accelerated 55% in the month of March 2021 to reach monthly record $213 million ,according to data released by the State Bank of Pakistan.
 |
| Pakistan's Monthly IT Exports. Source: Pakistonomy |
Higher education in Pakistan has come a long way since its independence in 1947 when there was only one university, the University of Punjab. By 1997, the number of universities had risen to 35, of which 3 were federally administered and 22 were under the provincial governments, with a combined enrollment of 71,819 students. A big spending boost by President Pervez Musharraf helped establish 51 new universities and awarding institutions during 2002-2008. This helped triple university enrollment from 135,000 in 2003 to about 400,000 in 2008, according to Dr. Ata ur Rehman who led the charge for expanding higher education during Musharraf years. There are 161 universities with 1.5 million students enrolled in Pakistan as of 2014. Pakistan now boasts 220 universities with 40,000 faculty members and 1.5 million students, according to Dr. Javaid Laghari, former chairman of Higher Education Commission of Pakistan.
Pakistan is now producing over 20,000 information technology graduates annually, according to the Punjab IT minister Mian Aslam Iqbal. He says Pakistan has more than 2,000 IT companies and call centers, and 300,000 English speaking IT professionals.
Pakistan's digital gig economy has surged 69% during the COVID19 pandemic, putting the country among the world's top 4 hottest online freelancer markets, reports Payoneer, a global payments platform company based in Silicon Valley, in its latest report. Payoneer attributes it to government programs such as Punjab government's e Rozgaar program that has been offering free online courses in digital freelancing. The sudden rush to learn skills online boosted the demand for instructors. The Pakistan government filled this demand by hiring alumni of programs like e Rozgaar who were successfully participating in the gig economy.
 |
| Punjab government's e-rozgaar program logo |
“One factor that goes a long way to explain this is that in April, local government authorities took the initiative to rapidly shut down educational institutes as a way to contain the spread of the virus,” the report said, adding that this led to the development of a new online education system and as part of this initiative, government training programs, such as e-Rozgaar, expanded its services throughout the country, offering people a new way to enhance their professional capabilities. “The mission was to help expedite freelancing skills for thousands and enable them to earn a living in the most in-demand fields and ultimately lead to a higher employment rate,” the report highlighted.
A global survey conducted by Payoneer, shows that Pakistani women freelancers are earning $22 an hour, 10% more than the $20 an hour earned by men. While Pakistani male freelancers earnings are at par with global average, Pakistani female earnings are higher than the global average for freelancers. Digital gig economy is not only helping women earn more than men but it is also reducing barriers to women's labor force participation in the country. The survey also concludes that having a university degree does not help you earn more in the growing gig economy. The survey was conducted in 2015.
An average Pakistani freelancer working 34 hours a week at $20 an hour earns $34,000 a year, or Rs. 5.7 million a year, a small fortune for a young Pakistani. This is one of the upsides of the online global labor market for skilled young men and women in developing nations like Pakistan. Sometimes freelancing experience leads to tech startups in Pakistan.
Another interesting survey finding is that freelancers with a university degree earn about 10% less on average than those with just the high-school diploma. This indicates that the freelancers skills matter more than the level of formal education.
Payoneer surveyed 23,000 freelancers worldwide, including emerging markets such as Pakistan, the Philippines and the Ukraine. Survey respondents comprise a random sample of Payoneer’s cross-border payment platform users, providing unique insights into how these globally-enabled freelancers operate, what makes them successful and what rates they command.
Pakistani freelancers worked about 34 hours a week, a little less than the 36 hours global average. Indian freelancers log 37.4 hours a week and Bangladeshis 35.9 hours weekly. Freelancers from Kenya average the highest amount of hours per week (42.6) with Egypt coming in second (38.5). Professionals working in Morocco and Tunisia work the fewest hours per week, potentially as a high percentage of them are also working at companies as well
Pakistan's digital gig economy growth is the fastest in Asia and fourth fastest in the world, according to digital payments platform Payoneer.
United States led gig economy growth of 78% followed by the United Kingdom 59%, Brazil 48%, Pakistan 47% and Ukraine 36%. Asia growth was led by Pakistan followed by Philippines (35%) , India (29%) and Bangladesh (27%).
The rapid gig economy expansion of 47% in Pakistan was fueled by several factors including the country's very young population 70% of which is under 30 years of age coupled with improvements in science and technical education and expansion of high-speed broadband access. Pakistani freelancers under the age of 35 generated 77% of the revenue in second quarter of 2019.
Mohsin Muzaffar, head of business development at Payoneer in Pakistan, has said as follows: "Government investment in enhancing digital skills has helped create a skilled freelancer workforce while blanket 4G coverage across Pakistan has given freelancers unprecedented access to
international jobs".
In Q2/2019, Asia cemented its status as a freelancer hub. Pakistan, Bangladesh and India, Philippines made it to the top 10 list, collectively recording 238% increase from Q2/2018.
Pakistan technology exports are on a rapid growth trajectory, thanks to the investment made in education during Musharraf years. Pakistan is now producing over 20,000 information technology graduates annually, according to the Punjab IT minister Mian Aslam Iqbal. He says Pakistan has more than 2,000 IT companies and call centers, and 300,000 English speaking IT professionals.
Silicon Valley based global payments platform Payoneer has reported that Pakistan's digital gig economy has surged 69% during the COVID19 pandemic, putting the country among the world's top 4 hottest online freelancer markets. A global survey results on freelancing show that Pakistani women freelancers are earning $22 an hour, 10% more than the $20 an hour earned by men. While Pakistani male freelancers earnings are at par with global average, Pakistani female earnings are higher than the global average for freelancers. The survey also concludes that having a university degree does not help you earn more in growing gig economy. The survey was conducted in 2015. As of 2017, Pakistan freelancers ranked fourth in the world and accounted for 8.5% of the global online workforce, according to Online Labor Index compiled by Oxford Internet Institute. India led with 24% share followed by Bangladesh 16%, US 12%, Pakistan 8.5% and Philippines 6.5%.
Related Links:
Haq's Musings
South Asia Investor Review
COVID19 Pandemic in Pakistan
Pakistan's Sadia Zahidi Leads WEF Gender Equity Effort
Brothers From Rural Pakistan Teaching AI to American High Schoolers
Pakistan's Computer Services Exports Jump 26% Amid Coronavirus Lockdown
Pakistan Gig Economy Among World's Fastest Growing
Digital BRI and 5G in Pakistan
Pakistan's Demographic Dividend
Pakistan EdTech and FinTech Startups
State Bank Targets Fully Digital Economy in Pakistan
Campaign of Fear Against CPEC
Fintech Revolution in Pakistan
E-Commerce in Pakistan
The Other 99% of the Pakistan Story
FMCG Boom in Pakistan
Belt Road Forum 2019
Fiber Network Growth in Pakistan
Riaz Haq's Youtube Channel
Viewpoint From Overseas Channel
Pakistan's Tech Exports Exceed $1.5 Billion in First 9 Months of Fiscal Year 2020-21
Pakistan's technology exports are continuing their growth trajectory, soaring 44% in the first 9 months (July-March) of the current fiscal y...
