Islamabad, Nov 18: In October 2024, Pakistan’s IT exports reached US$ 330 million, marking a 39 percent increase year-over-year (YoY) and a 13 percent rise month-over-month (MoM).
This performance exceeded the 12-month average of US$ 287 million, continuing the trend of YoY growth for the 13th consecutive month since October 2023.
For the first four months of FY25, IT exports amounted to approximately US$ 1.21 billion, reflecting a 35 percent YoY increase.
The growth is attributed to several factors, including the expansion of IT export companies’ client bases, particularly in the GCC region, the State Bank of Pakistan’s relaxation of retention limits in exporters’ foreign currency accounts, and the stability of the Pakistani Rupee, which has encouraged exporters to bring a higher portion of their profits back to the country.
The MoM increase in October is also attributed to the higher number of working days in the month (23 days in October compared to 20 days in September). Daily export proceeds in October were recorded at US$ 14.3 million, slightly lower than the US$ 14.6 million in September.
Pakistani IT companies have been actively engaging with global clients, with major firms attending events such as the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference. A survey by the Pakistan Software Houses Association (P@SHA) revealed that 62 percent of IT companies maintain specialized foreign currency accounts.
A significant development in FY25 is the introduction of a new category by the State Bank of Pakistan (SBP) called Equity Investment Abroad (EIA) for export-oriented IT companies.
This allows IT exporters to acquire foreign shareholding using up to 50 percent of the proceeds from specialized foreign currency accounts, which is expected to further enhance exporters’ confidence in remitting profits back to Pakistan.
Net IT exports, calculated as exports minus imports, reached US$ 299 million in October 2024, a 47 percent YoY increase, marking the highest-ever monthly figure.
This figure also surpasses the last 12-month average of US$ 253 million.
The IT sector is poised to maintain its growth trajectory, with an estimated growth rate of 10-15 percent for FY25, potentially reaching US$ 3.5-3.7 billion.
