Pakistan's IT exports surge to all-time high of $3.8 billion in FY25

Business Recorder

18-07-2025

Pakistan's IT exports continued their strong growth trajectory, reaching a record high of $3.8 billion in the financial year 2024-25, driven by innovation and quality service delivery.
According to the State Bank of Pakistan (SBP), exports of IT and IT-enabled services rose to $3.8 billion in FY25, up from $3.2 billion in the previous year—reflecting a year-on-year growth of 18%.
The IT sector remained the third-largest source of foreign exchange for Pakistan, following the textile and rice sectors. It also accounted for the largest share—45%—of the country's total services exports by the end of FY25.
Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), Muhammad Umair Nizam, said IT exports have shown consistent growth over the past several years, significantly contributing to the national economy, particularly in helping stabilize the current account, which recorded a surplus this fiscal year.
He noted that Pakistan's IT sector could have earned even more foreign exchange if favorable policies had been introduced in a timely manner and if unpredictable national and global challenges had not emerged.
He added that the IT industry, in collaboration with its representative body P@SHA and key government organizations—including the Ministry of IT and Telecommunication, Pakistan Software Export Board (PSEB), and the Special Investment Facilitation Council (SIFC)—is actively working to promote the domestic IT sector and boost exports.
'Once the government resolves outstanding challenges, IT companies will be better positioned to attract increased foreign exchange through exports,' Nizam said.
In the last fiscal year, the government allowed IT companies to retain 50% of their foreign currency earnings in special forex bank accounts. It also introduced cash rewards for top exporters and addressed tax reporting issues.
Mehwish Salman Ali, a member of P@SHA's AI Committee, said that export values can rise further through the adoption of cutting-edge technologies, offering advanced solutions to international markets to secure higher profit margins.
She emphasized that Pakistani companies should accelerate innovation and cater to emerging demands, particularly in areas such as Artificial Intelligence, Machine Learning, and Cybersecurity. She also highlighted the importance of capacity building among IT professionals and fostering joint ventures with foreign companies in various regions.
The government, along with IT companies, has made investments in promoting Pakistan's IT sector, showcasing its solutions and services in the Gulf, Europe, and ASEAN countries.
Khushnood Aftab, Convener of the IT Committee at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stressed that the government should diversify not only export markets but also the range of IT products.
He noted that while Pakistan currently exports IT hardware in limited volumes, innovation in technology could boost exports of hardware such as computers, laptops, and various devices. This would not only bring in foreign exchange but also foster technology transfer in the country.
Aftab, who is also Chairman of Viper Group, said Pakistan could enhance its global reputation by promoting 'Made-in-Pakistan' IT hardware products.
The government has set an ambitious target of $5 billion in IT exports for FY26, and $10 billion by FY29, under its Uraan Pakistan vision.