Despite persistent challenges such as internet outages and firewall limitations, Pakistan’s IT export sector continues to demonstrate resilience and growth potential. In November, the monthly IT exports reached $324 million, surpassing the 12-month average of $295 million and marking the 14th consecutive month of year-on-year (YoY) growth since October 2023. This represents a significant 25% YoY increase, although exports experienced a 2% decline compared to October due to a reduction in working days (21 in November compared to 23 in October). Nonetheless, daily export earnings improved to $15.4 million in November, an increase from $14.3 million in October.
A report by Topline Securities indicates that IT exports during the first five months of FY25 rose by 33%, amounting to $1.53 billion. Several factors contribute to this robust performance. The stability of the Pakistani rupee has encouraged exporters to repatriate a larger portion of their profits, while the State Bank of Pakistan (SBP) has raised the permissible retention limit for foreign currency accounts from 35% to 50%, enabling exporters to keep more funds abroad. Furthermore, Pakistani IT firms are actively broadening their global client base, particularly in the Gulf Cooperation Council (GCC) region.
Topline Research highlights that Pakistani IT companies are enhancing their presence in international markets. Their recent participation in events such as Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference underscores Pakistan’s IT capabilities and commitment to global engagement.
A significant development in FY25 is the SBP’s introduction of the Equity Investment Abroad (EIA) category, which permits IT exporters to acquire equity stakes in foreign entities using up to 50% of their specialized foreign currency proceeds. This initiative is anticipated to bolster exporter confidence and attract additional investments. Supporting this trend, a survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies now maintain specialized foreign currency accounts, thereby streamlining their financial operations.
