Islamabad, Mar 18, 2025: Pakistan’s information technology (IT) sector continues its upward trajectory, with exports reaching an all-time high of $305 million in February 2025.
This marks a substantial 19% increase compared to February 2024, demonstrating the industry’s resilience and expansion.
However, the month-on-month comparison shows a slight 3% dip from January 2025, largely due to the shorter duration of February.
Despite this, the sector has sustained year-on-year growth for 17 consecutive months since October 2023, reflecting the consistent global demand for Pakistani IT services.
From July 2024 to February 2025, IT exports have surged to $2.48 billion, registering an impressive 26% increase compared to the same period last year.
The daily export earnings averaged $16.1 million in February, surpassing January’s $13.6 million per day, showcasing a strong upward trend in foreign earnings.
Industry experts attribute this robust growth to several key factors.
Pakistani IT firms have been expanding their international clientele, especially in the Gulf Cooperation Council (GCC) region, capitalizing on increasing digital transformation needs.
Additionally, the State Bank of Pakistan’s decision to raise the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% has encouraged companies to repatriate a larger portion of their earnings.
This policy, along with new allowances for equity investments abroad, has boosted investor confidence in the sector.
Active participation in global tech events has further strengthened Pakistan’s IT presence.
Major firms have showcased their expertise at international platforms like LEAP 2025 in Saudi Arabia and the Web Summit in Qatar.
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According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies are now utilizing specialized foreign currency accounts, adapting effectively to evolving financial regulations.
A significant policy shift in fiscal year 2025 is the introduction of a dedicated Equity Investment Abroad (EIA) category by the State Bank of Pakistan.
This initiative allows IT exporters to invest up to 50% of their foreign currency earnings into overseas ventures, fostering global partnerships and enhancing the sector’s competitiveness.
Net IT exports, which account for exports minus imports, stood at $278 million in February, reflecting a strong 21% year-on-year increase.
Although it declined slightly by 1% compared to the previous month, this figure remains above the 12-month average of $265 million, showcasing consistent progress.
Looking ahead, analysts predict the IT industry will continue its growth momentum, expecting a 10-15% annual increase, potentially pushing total exports to $3.5-$3.7 billion by fiscal year-end.
Under the ‘Uraan Pakistan’ economic initiative, the government aims to achieve $10 billion in IT exports by 2029, requiring a 28% compound annual growth rate (CAGR).
