Foreign Direct Investment in IT sector posts 120 percent growth in Jul-Oct 2011

KARACHI: Pakistan’s Information and Technology (IT) industry has gained limelight as foreign investors are seeking healthy opportunity to work with local software houses and service providers as shown by the substantial inflow of foreign investment in the country.

State Bank of Pakistan (SBP) statistics said the Foreign Direct Investment (FDI) in the IT sector witnessed growth of 120 percent, attracting capital of $ 9.4 million in the first fourth months of the current fiscal year 2011-12 compared with corresponding year of previous year. The FDI inflows were recorded in software development with $6.5 million, IT services with $ 1.8 million and hardware services with $ 1.1 million respectively.

Despite lots of challenges, local IT companies and foreign companies with their subsidiaries are tapping potential of local market in various fields including software programming, mobile applications, networking services and hardware production.

Industry people said that global companies are seeking joint ventures with local firms or planning to set up their outlets for exploiting talents of the local industry in different fields. Foreign companies having offices in Pakistan are trying to scale up their business with expansion of their networks and production volume, they said.

The recent achievements in the IT sectors, which include the regional recognition at APICTA Awards, Tenpearl and Pepper.pk, must have grabbed the attention of the world. Hence, the FDI witnessed handsome growth in the current fiscal year and a business volume has been increasing with number of employment in the IT sector.

According to Security Exchange Commission of Pakistan (SECP), there are 83 companies having comprehensive authorised and paid-up capital were listed in the four months (Jul-Oct) 2011 in Pakistan.

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