With policy support, IT exports surge above $2b
Pakistan's information technology (IT) exports continued their upward trajectory, surging above $2 billion due to consistent penetration of local industry into foreign markets with active support from government measures and policies.
According to the State Bank of Pakistan (SBP), exports of IT and IT-enabled services surged to $2.17 billion in seven months (Jul-Jan) of the current financial year as compared with exports of $1.72 billion in the same period of last year, showing a double-digit growth of 27%.
The jump in IT exports comes in the wake of a growing client base globally of Pakistani IT companies, especially in the Gulf Cooperation Council (GCC) region, relaxation in the permissible retention limit by the SBP, which increased it from 35% to 50% for the Exporters' Specialised Foreign Currency Accounts, permission for equity investment abroad through these foreign currency accounts and stability of the Pakistani rupee that encouraged IT exporters to bring a higher proportion of profits back to Pakistan.
Pakistan Software Houses Association (P@SHA) Senior Vice Chairman Muhammad Umair Nizam said the continued momentum in Pakistan's IT exports reflected the strength and global competitiveness of the IT sector. This success is driven by the expanding client base of Pakistani IT firms, particularly in the GCC region, as well as key policy measures, including the increase in the permissible retention limit and the introduction of overseas equity investment. IT exporters acknowledge the vital role played by the Special Investment Facilitation Council (SIFC), the Ministry of IT and Telecommunication and the Pakistan Software Export Board (PSEB) in supporting the sector. Their initiatives have provided much-needed policy stability, improved regulatory frameworks and facilitated investment opportunities for IT companies.
However, it is crucial that policy decisions are made in close consultation with P@SHA and industry stakeholders to ensure that they address real challenges and maximise relief for exporters, he said.
He urged the government to continue prioritising industry-friendly policies to enable Pakistan to emerge as a leading technology hub.
Exports in January 2025 stood at $313 million, higher than the last 12-month average of $303 million. This is the 16th consecutive month of year-on-year (YoY) growth in IT exports, starting from October 2023.
Pakistani IT companies are active in engaging with global clients through participation in trade fairs such as Oslo Innovation Week and Pak-US Tech Investment Conference.
IT exporter Mehwish Salman Ali said IT companies should explore emerging markets in innovative fields including AI, data storage, cybersecurity and the like to win handsome orders.
A host of countries, including the US, Saudi Arabia and the United Arab Emirates, have come up with better investment plans for AI projects, which should be focused by Pakistani companies and the government, she said.
IT exporters should also work on the capacity building of human resources in emerging fields through skill development programmes in collaboration with universities and software houses, Mehwish Salman Ali, who is the CEO of Datavault, said.
Analysts of Topline Securities forecast that the IT sector would continue its growth trajectory and momentum with likely growth of 10-15% in FY25 to $3.5-3.7 billion.
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