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Business Recorder
28-07-2025
- Business
- Business Recorder
IT exports
Pakistan's IT and ICT exports touched a historic high in FY25, clocking in at $3.8 billion. That's an 18 percent jump over last year, though shy of the government's $4 billion target and slower than the 24 percent growth seen in FY24. June alone brought in $338 million, up 14 percent year-on-year and 3 percent month-on-month, taking monthly exports above the 12-month average of $314 million. Net IT exports (after imports) also reached $306 million for the month, up 20 percent year-on-year. The story remains anchored in computer services, which pulled in $3.24 billion, up from $2.65 billion last year, while telecom exports stalled at $554 million. Information services, though small, more than doubled to $21 million, hinting at a slow but growing diversification within the export basket. Yet, even with the record-breaking performance, the missed target underscores persistent structural bottlenecks. Pakistan's IT sector still grapples with talent shortages, rising wage pressures, and patchy connectivity, while global tech spending slowed as firms cut back on budgets. Tax and payment reforms have also lagged, limiting exporters' ability to fully ride global demand. The slower growth rate in FY25 compared to FY24 can also be attributed to a base effect since FY24 had already seen an unusually high jump of 24 percent year-on year. Policy support has, however, cushioned the sector. The State Bank allowed exporters to retain 50 percent of their foreign earnings (up from 35 percent) and even invest abroad, encouraging them to repatriate a larger share of profits. Pakistani IT firms have also been busy expanding their global footprint, tapping into the GCC market, and highlighting at international events like London Tech Week 2025 and the Pak-US Tech Investment Conference. A decade ago, IT exports accounted for barely 2–3 percent of Pakistan's goods and services exports; today, they are close to 10 percent. The government's ambition is to hit $10 billion by FY29 under the 'Uraan Pakistan' plan, which implies an annual growth rate of 27 percent. Whether that materializes will depend on how fast Pakistan can fix infrastructure gaps, build a skilled talent pipeline, and simplify its regulatory framework. Copyright Business Recorder, 2025
Express Tribune
19-02-2025
- Business
- Express Tribune
With policy support, IT exports surge above $2b
In the age of information technology, such initiatives are very important and necessary to promote the culture of research amongst students, according to the Sindh governor. PHOTO: AFP 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.
