Islamabad, Feb 18: Pakistan’s IT sector continued its growth trajectory, recording exports of $313 million in January 2025. This marks an 18% year-over-year (YoY) increase, although exports declined by 10% compared to December 2024. Notably, this figure surpasses the 12-month average of $303 million, highlighting the sector’s resilience. According to Topline Securities, this is the 16th consecutive month of YoY growth since October 2023.
During the first seven months of FY25, Pakistan’s IT exports reached $2.18 billion, reflecting a robust 27% YoY growth. Daily export proceeds stood at $13.6 million in January 2025, compared to $16.6 million in December 2024.
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Several factors have contributed to the sustained increase in IT exports:
- Expansion of Pakistani IT firms in global markets, particularly in the GCC region.
- The State Bank of Pakistan (SBP) increased the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%.
- Approval for equity investments abroad through these accounts.
- Stability in the Pakistani Rupee (PKR), encouraging IT firms to repatriate higher profits.
Pakistan’s IT industry is actively engaging with international markets. Recently, key IT firms participated in the Oslo Innovation Week and the Pak-US Tech Investment Conference, strengthening their global footprint.
According to a survey by the Pakistan Software Houses Association (P@SHA), 62% of IT companies maintain specialized foreign currency accounts. A significant policy shift in FY25 was SBP’s introduction of the Equity Investment Abroad (EIA) category, allowing IT exporters to acquire stakes in foreign entities using up to 50% of their foreign currency earnings. This move is expected to further boost confidence among IT exporters and increase foreign remittances.
In January 2025, net IT exports (exports minus imports) stood at $281 million, reflecting a 17% YoY increase and a 27% month-over-month (MoM) rise. This figure exceeds the past 12-month average of $261 million.
Topline Securities projects a 10-15% annual growth for the IT sector, with FY25 exports likely reaching $3.5-$3.7 billion. Under the ‘Uraan Pakistan’ national economic initiative, the government aims to achieve $10 billion in IT exports by FY29, requiring a compound annual growth rate (CAGR) of 28%.
Among leading IT firms, Systems Limited (SYS) is a top contender, currently trading at a price-to-earnings (PE) ratio of 15.0x for 2025 and 11.2x for 2026. With ongoing policy support and global expansion, Pakistan’s IT sector is well-positioned for sustained growth in the coming years.
