Pakistan’s information technology (IT) and IT-enabled services (ITeS) exports, including computer and call center services, recorded a significant 32% growth during the first five months (July-November) of the current fiscal year 2024-25. According to official data, IT export remittances reached $1.530 billion, up from $1.152 billion during the same period last fiscal year.
In November 2024, IT export remittances grew by 25% year-on-year (YoY), reaching $324 million, compared to $259 million in November 2023. However, on a month-on-month (MoM) basis, remittances saw a slight decline of 2%, falling from $330 million in October 2024.
The IT sector achieved an all-time high in FY2023-24, with export remittances reaching $3.223 billion, reflecting a 24% increase compared to $2.596 billion in FY2022-23. Despite this growth, the government acknowledges that a significant portion of IT export revenue remains unremitted.
The government has set an ambitious target to increase IT exports from $3.2 billion in FY2024 to $4.2 billion in FY2025. This goal is supported by measures to address challenges faced by the sector, particularly freelancers and IT companies.
Freelancers’ Contribution and Banking Challenges
Pakistan is home to 2.32 million freelancers, who contribute 15% of the country’s IT exports. However, only 38,000 freelancers currently hold bank accounts, highlighting a gap in financial inclusion. According to State Bank of Pakistan (SBP) data, around 500 new accounts are being opened weekly, but retaining these account holders and encouraging others to open accounts remains a critical challenge.
Policy Measures to Support IT Sector
To address the sector’s demands, the SBP has increased the foreign exchange retention limit for IT exporters and freelancers to 50% or $5,000 per month (whichever is higher), up from the previous limit of 35%. This move is expected to incentivize IT professionals to bring their earnings into Pakistan.
Additionally, banks have been instructed to simplify the process of opening accounts in both PKR and foreign currency for freelancers and IT companies. These measures aim to enhance accessibility and encourage greater participation in the formal banking system, ultimately boosting the country’s IT export remittances.
