KARACHI: Pakistan’s information technology (IT) sector has shown remarkable resilience and growth, recording monthly exports of $313 million in January 2025. This figure represents an 18 per cent increase year-on-year (YoY), although it reflects a 10 per cent decrease month-on-month (MoM) compared to December 2024.
Notably, exports in January 2025 surpass the average monthly IT exports of $303 million over the past year, marking the 16th consecutive month of YoY growth that began in October 2023. Cumulatively, IT exports for the first seven months of fiscal year 2025 (7MFY25) have reached US$2.18 billion, a significant 27 percent increase YoY.
In January 2025, the daily export proceeds were recorded at $13.6 million, down from $16.6 million in December 2024. An analyst at Topline Securities said the surge in YoY IT exports can be attributed to several key factors: an expanding global client base for Pakistani IT firms, particularly in the Gulf Cooperation Council (GCC) region; a recent relaxation by the State Bank of Pakistan (SBP) regarding the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts, which has increased from 35 per cent to 50 per cent; and the allowance for equity investments abroad through these accounts.
Additionally, a stable rupee has encouraged IT exporters to repatriate a larger share of their profits back to Pakistan. Pakistani IT companies are actively engaging with international clients, as evidenced by their participation in events such as Oslo Innovation Week and the Pak-US Tech Investment Conference. According to a survey conducted by the Pakistan Software Houses Association (PSHA), approximately 62 per cent of IT firms are maintaining specialised foreign currency accounts. A notable development this fiscal year is the SBP’s introduction of a new category for equity investment abroad (EIA), specifically designed for export-oriented IT companies, allowing them to invest up to 50 per cent of their proceeds from these accounts into foreign entities. This initiative is expected to enhance exporters’ confidence in remitting funds back to Pakistan.
The net IT exports, calculated as exports minus imports, stood at $281 million for January 2025, reflecting a 17 per cent increase YoY and a 27 per cent increase MoM, which is also above the last 12-month average of $261 million.
Analysts project that the IT sector will maintain its growth trajectory, estimating an overall increase of 10-15 per cent for FY25, potentially reaching between $3.5 billion and $3.7 billion.
Under the ‘Uraan Pakistan’ national economic plan, the government has set an ambitious target of achieving $10 billion in IT exports by FY29, which implies a compound annual growth rate (CAGR) of approximately 28 per cent until that date. The ongoing developments and strategic initiatives within Pakistan’s IT landscape indicate a robust outlook for continued growth and expansion in this vital sector of the economy.