IT exports hit record $338m in June, $3.8bn in FY25

KARACHI: The information technology (IT) sector reached a significant milestone in June 2025, with monthly exports climbing to a record $338 million, marking a 14 per cent year-on-year (YoY) increase and a 3.0 per cent rise month-on-month (MoM), data showed on Friday.

These figures surpass the 12-month average of $314 million and signal strong recovery following a dip in May 2025. Daily export proceeds during the month stood at $17.8 million compared to $16.5 million in May.

Cumulatively, IT exports for the fiscal year 2025 (FY25) closed at $3.8 billion, an 18 per cent rise over FY24. While the annual growth rate is slightly lower than the 24 per cent recorded in the previous fiscal year, it remains strong compared to the 10-year compound annual growth rate (CAGR) of 17 per cent.

Sania Irfan, a technology sector analyst at Topline Research, said the rise in FY25 IT exports has been attributed to multiple key factors. These include a global expansion of client portfolios by Pakistani IT firms, particularly in the Gulf Cooperation Council (GCC) region, and crucial regulatory relaxations by the State Bank of Pakistan (SBP). Among these measures is the increase in the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts from 35 per cent to 50 per cent. The SBP, she added, has also allowed exporters to make equity investments abroad using these accounts, a move expected to incentivise the repatriation of higher profits.

A noteworthy initiative by the SBP during FY25 was the introduction of a new category, Equity Investment Abroad (EIA), specifically targeting export-oriented IT companies. This enables them to acquire shareholding in foreign entities using up to 50 per cent of their foreign currency earnings.

According to a recent survey conducted by the Pakistan Software Houses Association (P@SHA), 62 per cent of IT firms are already maintaining these specialised accounts, indicating a strong base for leveraging the new investment window.

Pakistan’s IT firms have been active in showcasing their capabilities internationally. Several leading companies recently participated in London Tech Week 2025 and the Pak-US Tech Investment Conference, helping them expand their global reach.

Net IT exports (exports minus imports) in June 2025 stood at $306 million, reflecting a 20 per cent YoY and a 4.0 per cent MoM increase. This figure also exceeds the 12-month average of US$272 million, demonstrating growing export strength even after adjusting for sectoral imports.

Industry sources suggest that IT exports are expected to grow by 10-15 per cent in FY26. The government, under its national economic development plan ‘Uraan Pakistan’, has set an ambitious target of $10 billion in IT exports by FY29, requiring a CAGR of 27 per cent over the next four years.