IT exports higher than reported: BASIS chief

Exports of software and IT-related services crossed the $1-billion mark, which the government and industry people had set as a target for 2018, a sector leader said yesterday.

Export earnings from the sector are poised to surpass $2 billion by 2018, said Mustafa Jabbar, president of Bangladesh Association of Software and Information Services, adding that BASIS will reset the target shortly.

“We are certain that the country crossed $1 billion in export earnings, though most figures are not reported to the government properly,” said Jabbar.

Three years ago, the government and industry players declared a target of earning $1 billion from exports by 2018.

Many companies bring their export earnings in the form of inward remittance, and State Minister for ICT Zunaid Ahmed Palak said those funds should be counted as earnings from IT or IT enabled services.

“Some companies are earning about $1 million a year, but the numbers are not being reflected on paper,” said Palak.

However, Export Promotion Bureau said exports from computer services were $152 million in 2015-16.

BASIS found that export earnings of 382 of its members were $594 million in fiscal 2014-15, though their local revenue was very low.

The number of active BASIS members is 904 and only half of them earned the amount, said Jabbar.

“If we get the export figures of the other members, the figure will definitely be around $1 billion.”

Apart from the BASIS members, there are some other sources of export earnings.

Last year, the country's export earnings from business process outsourcing were $130 million.

There are thousands of outsourcers who also earn a handsome amount from other countries, according to Jabbar.

“Another 1,000 software companies are also developing software and earning attractive revenues,” he said. “All these data make us confident.”

The application and games market is also developing products according to the needs of the international market.

The BASIS chief said they found around 30 companies with earnings of more than $1 million a year, mentioning some local companies such as Dohatec, REVE Systems and GraphicPeople.

“At least one company earned more than $43 million a year.”

Palak said they have already declared a project -- Mission One Billion -- and they are working on this project.

Referring to Bangladesh Bureau of Statistics' recent survey, Jabbar said it also declared that the industry's earnings crossed $700 million.

The commerce ministry is carrying out a detailed survey on software, hardware, internet and ITES earnings, for both local and export markets.

Although the government targeted $5 billion in export earnings from the software and ITES sector by 2021, it will supersede the target within a few years, said BASIS.

Mentioning some drawbacks, BASIS members said they find it difficult to access loans.

The banks are not interested in giving them loans and the government is not investing properly to boost the sector, they added.