IT exports falls by 23% to eight-month low in january

IT exports falls by 23% to eight-month low in january

Pakistan's information technology (IT) exports for January 2023 reduced by 23% month-on-month (MoM) to the lowest since May 2022, data showed on Wednesday, with a clue that a gap between exchange rate markets had backed to the weakening.

IT exports for January 2023 stood at $190 million, with a 20% and 35% MoM decline in computer and telecom services respectively.

Among computer services, exports of computer software and software consultancy dropped by 25% and 15% MoM respectively.

The substantial decline in January is indicative of 10-15% gap existing between inter-bank and grey market rates of US Dollar for most of the month.

However, after the reduction of the gap between market rates at the end of January 2023, IT exports proceed with the realisation from formal banking channels and are expected to recover.

On year-on-year (YoY), IT exports for January 2023 increased by 2% due to an 8% YoY increase in telecom services. The exports for January 2023 are the lowest since May 2022 which was $184 million. The amount is below the 6-month rolling average of $221 million.