Pakistan’s IT exports continued to maintain robust growth, surpassing the $2 billion mark in the first seven months of the current financial year 2024-25, with a 27% year-on-year increase, according to data released by the State Bank of Pakistan (SBP).
This significant jump in IT exports is attributed to the expanding client base of IT export companies globally, particularly in the GCC region. Additionally, the SBP’s relaxation of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts, increasing it from 35% to 50%, along with the allowance for equity investment abroad through these accounts, has encouraged IT exporters to repatriate a higher portion of their profits back to Pakistan.
On a monthly basis, exports in January 2025 reached $313 million, exceeding the last 12-month average of $303 million. This marks the 16th consecutive month of year-on-year IT export growth, beginning in October 2023. The export proceeds per day were recorded at $13.6 million for January 2025, compared to $16.6 million in December 2024.
Pakistani IT companies are actively engaging with global clients. Recently, leading IT firms from Pakistan participated in Oslo Innovation Week and the Pak-US Tech Investment Conference. A major development in FY25 is that the SBP has introduced a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire interests (shareholding) in entities abroad by utilizing up to 50% of the proceeds from specialized foreign currency accounts. This development is expected to further boost the confidence of IT exporters in remitting proceeds back to Pakistan.
According to a survey by the Pakistan Software Houses Association (P@SHA), 62% of IT companies are maintaining specialized foreign currency accounts. Analysts from Topline Securities forecast that the IT sector will continue its growth trajectory, with an expected growth of 10-15% for FY25, potentially reaching $3.5-3.7 billion.
Under the ‘Uraan Pakistan’ national economic plan, the government has set a target of $10 billion in IT exports by FY29, implying a target compound annual growth rate (CAGR) of 28% until FY29.
