Pakistan’s information technology exports reached an all-time high of $342 million in March 2025, marking a 12 percent increase both year-on-year and month-on-month, according to data analyzed by Topline Securities.
This record figure exceeds the 12-month average of $311 million and extends the sector’s remarkable growth streak to 18 consecutive months, dating back to October 2023.
Strong Nine-Month Performance
The strong March performance has pushed IT exports for the first nine months of fiscal year 2025 to $2.8 billion, representing a substantial 24 percent increase compared to the same period last year. Daily export proceeds averaged $18.0 million in March, up from $16.1 million in February.
Factors Driving Growth
Industry analysts attribute this sustained growth to several key factors:
- Expansion of global client bases by Pakistani IT companies, particularly in the Gulf Cooperation Council (GCC) region
- The State Bank of Pakistan’s decision to increase the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent
- New permissions for equity investment abroad through these accounts
- Relative stability in the Pakistani rupee, encouraging exporters to repatriate a greater share of profits
Global Engagement and Policy Support
Pakistani IT firms have been actively participating in major international technology events, including LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025. A recent survey by the Pakistan Software Houses Association (P@SHA) revealed that 62 percent of IT companies are now maintaining specialized foreign currency accounts.
A significant development in FY25 has been the introduction of the Equity Investment Abroad (EIA) category by the State Bank, allowing export-oriented IT companies to acquire stakes in overseas entities using up to 50 percent of their foreign currency proceeds. This policy change is expected to further strengthen exporters’ confidence in remitting earnings back to Pakistan.
Net Exports and Future Outlook
Net IT exports (exports minus imports) in March 2025 stood at $311 million, showing a 13 percent year-on-year increase and a 12 percent month-on-month rise, also exceeding the 12-month average of $269 million.
Analysts remain optimistic about the sector’s prospects, projecting annual growth of 10-15 percent for FY25, with total exports potentially reaching between $3.5 billion and $3.7 billion. Under the government’s ‘Uraan Pakistan’ economic strategy, the ambitious target for IT exports has been set at $10 billion by FY29, implying a compound annual growth rate of 28 percent.
Within the sector, Systems Limited (SYS) remains a top investment pick, currently trading at forecasted FY2025 and FY2026 price-to-earnings multiples of 13.4x and 10.1x, respectively.
