Pakistan’s IT Exports Surge by 39% YoY in October 2024

Pakistan’s Information Technology (IT) sector has achieved a remarkable milestone, recording monthly exports of $330 million in October 2024, reflecting a 39% year-on-year (YoY) growth and a 13% month-on-month (MoM) increase. This performance surpasses the average monthly exports of the past 12 months, which stood at $287 million, marking significant progress in the country’s IT sector.

October 2024 marked the 13th consecutive month of YoY growth in IT exports, a trend that began in October 2023. The sustained growth has brought the cumulative IT exports for the first four months of the fiscal year 2025 (4MFY25) to approximately $1.21 billion, a 35% YoY increase.

Pakistan’s IT Exports Surge by 39% YoY in October 2024

Analysts at Topline Securities attribute the YoY surge in IT exports to several key factors:

1. Global Client Expansion: Pakistani IT export companies have successfully expanded their client base, particularly in the Gulf Cooperation Council (GCC) region, opening new avenues for growth.
2. Relaxation in Retention Limits: The State Bank of Pakistan (SBP) increased the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%. This move has empowered IT exporters to reinvest and retain more of their earnings.
3. PKR Stability: The relative stability of the Pakistani Rupee (PKR) has encouraged IT exporters to repatriate a larger portion of their profits, bolstering export proceeds.

The 13% MoM increase in IT exports can be attributed to the higher number of working days in October (23) compared to September (20). Despite this, daily export proceeds slightly decreased to $14.3 million in October 2024 compared to $14.6 million in September 2024, indicating consistent performance.

Pakistani IT companies have been proactive in connecting with global clients and showcasing their capabilities. Key events like Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference have provided opportunities for Pakistani companies to establish valuable partnerships and secure international projects.

A survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies in Pakistan maintain specialized foreign currency accounts, further strengthening their operational capabilities.

See Also: Telecom Operators in Pakistan Face PKR 76 Billion Debt to USF

A significant policy development in FY25 was the introduction of a new category, Equity Investment Abroad (EIA), by the SBP. This allows export-oriented IT companies to acquire equity or shareholding in foreign entities using up to 50% of proceeds from their specialized foreign currency accounts. This initiative aims to boost exporters’ confidence, encouraging them to remit profits back to Pakistan while expanding their global footprint.

In October 2024, net IT exports (exports minus imports) reached a record $299 million, a 47% YoY increase. This figure also surpasses the previous 12-month average of $253 million, making it the highest-ever monthly performance for net IT exports in Pakistan.

The IT sector is poised for continued growth, with projections for FY25 indicating a 10-15% increase, potentially reaching $3.5–3.7 billion in exports. With strong policy support, global client engagement, and innovative initiatives, Pakistan’s IT industry remains on a promising trajectory.