Pakistan’s IT exports reached $298 million in August 2024, marking a 27 percent increase year-on-year and a 4 percent rise month-on-month. This figure surpasses the 12-month average of $275 million, according to data from Topline Securities.
The year-on-year growth in IT exports is attributed to several factors, including the expansion of IT companies’ client bases globally, particularly in the GCC region. Additionally, the State Bank of Pakistan’s decision to relax the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent has encouraged IT exporters to repatriate a larger portion of their profits.
The stability of the Pakistani Rupee (PKR) has also played a role in this positive trend.
The month-on-month increase in IT exports is partly due to a higher number of working days in August (21) compared to July (20), with export proceeds per day recorded at $14.2 million in August versus $14.3 million in July.
Pakistani IT companies have been actively engaging with global clients, with leading firms participating in international events such as London Tech Week 2024, Collision Canada 2024, and Black Hat, USA. According to a survey by the Pakistan Software Houses Association (P@SHA), 62 percent of IT companies are maintaining specialized foreign currency accounts.
A significant development on July 24 was the State Bank of Pakistan’s introduction of a new category, Equity Investment Abroad (EIA), specifically for export-oriented IT companies. This allows IT exporters to acquire interest (shareholding) in foreign entities using up to 50 percent of proceeds from their specialized foreign currency accounts, further boosting their confidence to remit proceeds back to Pakistan.
Net IT exports, calculated as exports minus imports, stood at $257 million in August 2024, reflecting a 26 percent year-on-year increase. This figure also exceeds the 12-month average of $241 million.
Topline Securities projects that the IT sector will maintain its growth trajectory, with an expected increase of 10-15 percent for FY25, reaching $3.5-3.7 billion.
