Pakistan recorded $313 million in monthly I.T. exports during January 2025, an 18% increase over January 2024 but a 10% decline compared with December 2024.
The January figure was higher than the 12-month average of $303 million. It also marks the 16th consecutive month that I.T. exports have grown on a year-on-year basis. Overall, in the first seven months of the ongoing fiscal year, I.T. exports have climbed to $2.18 billion, a 27% increase over the corresponding period last year.
Net I.T. exports during January stood at $281 million, 17% higher than the same period last year and 27% higher than December 2024.
In a report, Topline Securities said I.T. export proceeds per day during January 2025 stood at $13.6 million against $16.6 million in December 2024. It has attributed the boost in I.T. exports to companies growing their client base globally, especially in the Gulf region. Additionally, exports have benefited from relaxation in the permissible retention limit from 35% to 50% by the State Bank of Pakistan. Allowance of equity investment abroad through foreign currency accounts and stability in the value of the Pakistani rupee have also encouraged I.T. exporters to bring a higher percentage of their profits to Pakistan.
According to a survey conducted by the Pakistan Software Houses Association (P@SHA), 62% of I.T. companies are maintaining specialized foreign currency accounts.
In the current fiscal year, Topline has noted, the central bank has added a new category of Equity Investment Abroad specifically for export-oriented I.T. companies. The category allows I.T. exporters to acquire interest (shareholding) in entities abroad by utilizing up to 50% proceeds from specialized foreign currency accounts. This development will further boost confidence of I.T. exporters to remit proceeds back to Pakistan.
Topline anticipates the I.T. sector to continue its growth trajectory and momentum, with a cumulative growth of 10-15% to $3.5-3.7 billion for FY25. To achieve the government’s vision of $10 billion in I.T. exports by FY29, the sector needs to grow by 28% annually for the next four years.