Information Technology (IT) exports increased 13% year-on-year to $373 million in May, though monthly receipts declined from April due to fewer working days during the Eid holidays, according to industry data and analyst estimates.
On a month-on-month basis, I.T. exports fell 12% from April’s $423 million, with analysts attributing the decline largely to reduced business activity during the holiday period.
Cumulative I.T. exports during the first 11 months of the outgoing fiscal year reached $4.2 billion, marking a 20-21% increase from the same period a year earlier. The growth was driven by the sector’s expanding global footprint, increasing demand for Pakistani technology services and the country’s cost competitiveness in international markets.
Net I.T. exports, calculated as exports minus imports, stood at $314 million in May, up 7% from a year earlier.
Despite ongoing geopolitical tensions in the region, technology sector executives expect little impact on export earnings, citing the industry’s diversified international client base and growing presence in overseas markets. Analysts expect I.T. exports to exceed $400 million in June, allowing the sector to comfortably meet the government’s fiscal year target of $4.5 billion, which would represent annual growth of about 18%.
The government has identified the I.T. sector as a key pillar of economic growth and has set an ambitious target of increasing annual I.T. exports to $10 billion by fiscal year 2029 under the “Uraan Pakistan” economic plan. Achieving that goal would require compounded annual growth of about 27% over the next three years.
In a move welcomed by the industry, the federal government recently extended the sector’s preferential 0.25% Final Tax Regime on export receipts for another three years, through June 2029, as part of efforts to support export-led growth and attract further investment in the technology sector.