Daily Times

Experts from the Central Bank’s Economic Policy Review Department (EPRD) in the latest episode of the SBP Podcast discussed Pakistan’s thriving IT sector, which is playing a crucial role in driving economic growth, fostering fintech advancements, and witnessing significant startup expansion.

The podcast sheds light on strategies employed by developing nations to boost their IT industries, highlights challenges faced, and emphasizes the sector’s contribution to economic development. The podcast begins by showcasing the remarkable growth of Pakistan’s IT exports, with figures soaring from $290 million in 2013 to $2.1 billion in 2022, signifying a substantial expansion. It further highlights the noteworthy progress of Pakistani startups, attracting significant investments annually. Recognizing the importance of domestic investments, the podcast emphasizes the need to raise awareness and knowledge of startups within the local market. It also underscores the significance of addressing the skills gap in the IT and startup sectors, particularly through short-term solutions like establishing boot camps to bridge the skill shortage and provide market-oriented training.

Moreover, the podcast emphasizes the transformative impact of fintech on Pakistan’s economy and the challenges encountered during the journey towards digital transformation. Fintech companies are recognized as vital drivers of digitization, financial inclusion, and overall economic growth. The State Bank of Pakistan (SBP) is acknowledged for playing a pivotal role in fostering fintech development through initiatives such as the EMI policy and the introduction of the Raast payment system. Furthermore, the issuance of digital banking licenses by the SBP strengthens the fintech ecosystem.

In order to fully harness the potential of the IT sector, the podcast highlights the critical need for quality internet connectivity. While Pakistan has witnessed significant growth in internet users, there is still a gap to bridge in terms of access and usage. Accessible and reliable internet connectivity is essential to facilitate digital transformation, support fintech growth, and foster other digital businesses. Additionally, the podcast emphasizes the necessity of improving digital literacy among the population, encompassing skills such as cybersecurity and content creation. The podcast underscores the vital role of the government in promoting the IT sector and advancing e-governance initiatives.