Pakistan’s ICT Export Remittances Surge by 30% in Early 2024-25

Pakistan’s Information and Communication Technology (ICT) sector has achieved a significant milestone, with export remittances increasing by an impressive 30% in the first two months of the 2024-25 financial year. According to the Ministry of Information Technology and Telecommunication, remittances reached $584 million in the July-August period, compared to $449 million during the same time last year.

In August 2024 alone, ICT services remittances amounted to $298 million, reflecting a notable 26.8% increase from $235 million in August 2023. This also represents a $12 million growth from July 2024, showing a steady month-on-month rise of 4%. The continued growth in this sector underscores the expanding role of ICT services in Pakistan’s economic landscape.

Pakistan’s ICT Export Remittances Surge by 30% in Early 2024-25

The IT and IT-enabled Services (ITeS) industry has emerged as a key player in the country’s economic progress, contributing a significant trade surplus of $509 million during the first two months of FY 2024-25. This figure is the highest among all services sectors, accounting for 87.15% of total ICT export remittances. This surplus also marks a 29.2% increase compared to the $394 million surplus recorded in the corresponding period of FY 2023-24. The growing trade surplus further emphasizes the crucial role the ICT sector plays in generating foreign exchange for Pakistan.

In Pakistan’s economy, ICT export remittance inflow has become the largest contributor among all service sectors. After ICT services, “other business services” rank second, generating $255 million in remittances. The surge in ICT exports highlights the government’s focus on fostering the tech industry as a key driver of economic growth. It also reflects the increasing global demand for Pakistan’s IT and ITeS offerings, which range from software development and data processing to business process outsourcing.

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Pakistan’s ICT sector is poised for further growth in the coming years as government initiatives, such as providing incentives and improving infrastructure, continue to support the industry’s expansion. With a growing pool of tech talent and an increased focus on digital transformation, Pakistan’s ICT exports will play an even more significant role in boosting the nation’s economy. The current surge in export remittances sets a strong foundation for the sector’s continued progress.