Pakistan’s information technology (IT) exports reached a record $305 million in February 2025, marking a 19% increase compared to the same month last year, according to recent data.
However, this figure represents a 3% decline from January 2025, primarily due to the shorter month. Despite this monthly dip, February 2025 marks the 17th consecutive month of year-on-year growth in IT exports, beginning in October 2023.
For the first eight months of the fiscal year 2025, total IT exports have soared to $2.48 billion, reflecting a robust 26% increase year-on-year. Daily export proceeds averaged $16.1 million in February, up from $13.6 million in January, indicating a positive trend in the sector.
According to a report by Topline Securities, the year-on-year growth in IT exports can be attributed to several factors, including the expansion of client bases for IT companies, particularly in the Gulf Cooperation Council (GCC) region. Additionally, the State Bank of Pakistan’s recent decision to relax the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% has encouraged exporters to repatriate a larger share of their profits. The allowance for equity investments abroad through these accounts has further bolstered confidence among IT exporters.
Pakistani IT firms have been actively engaging with global clients, with many participating in significant events such as LEAP 2025 in Saudi Arabia and the Web Summit in Qatar. A survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies are maintaining specialized foreign currency accounts, highlighting the sector’s adaptability to new financial regulations.
A notable development in fiscal year 2025 is the introduction of a new category by the State Bank of Pakistan for Equity Investment Abroad (EIA), specifically aimed at export-oriented IT companies. This allows IT exporters to acquire shareholding in foreign entities using up to 50% of their proceeds from specialized foreign currency accounts, further incentivizing the repatriation of funds.
Net IT exports, calculated as exports minus imports, stood at $278 million in February, reflecting a 21% increase year-on-year, although down 1% month-on-month. This figure is above the 12-month average of $265 million.
Looking ahead, Analysts at Topline Securities predict that the IT sector will maintain its growth trajectory, with an expected increase of 10-15% for fiscal year 2025, 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 $10 billion in IT exports by fiscal year 2029, implying a compound annual growth rate (CAGR) of 28% until then.
