The IT exports of Pakistan reached a new high of $354 million in July posting a 24% growth on Year on Year and a 5% growth on Month on Month terms. This is higher compared to the 12-month average of $317 million reflecting the fast-growing digital services industry of the country.
Sani Irfan of Topline Securities stated that export earnings on an average of per day in July was lower at 15.4 million as compared to $17.8 million in June. Computer services were the main contributors to the increase as it increased 10 percent MoM to reach $311 million. In particular, software consultancy exports improved from a level of $96 million in June to July 2016 when they were reported to be at a level of $104 million.
Irfan was in fact attributing this YoY oil to the increasing overseas clients of Pakistani IT companies particularly in the GCC countries. The implications on this increased level of repatriation of profits by companies were also due to the State Bank of Pakistan permitting increased level of permitted retention of exporters in their specialized foreign currency accounts whose level stood at 35 % last increased earlier and now increased to 50 % by SBP.
Read more: Pakistan IT Exports Reach $3.1B Amid Economic Reforms
According to a P@SHA survey, 62 percent of the IT companies have foreign currency dedicated accounts. Guidelines governing the Equity Investment Abroad (EIA) scheme of the SBP which enables exporters to invest in foreign equity to the extent of up to 50 percent of these accounts have added to the confidence.
IT exports, which is the difference between exports and imports, has increased considerably YoY registering a 26 % rise and a minor 4 % rise MoM to reach $317 million in July giving an indication of growing strength in the global IT services market.
