Daily Times

Pakistan’s information technology (IT) exports grew by 19% year-on-year, reaching $305 million in February 2025. This marks the 17th consecutive month of export growth since October 2023. However, compared to January, IT exports saw a slight 3% decline, mainly due to fewer working days in February. Despite this monthly dip, the daily export proceeds rose to $16.1 million from $13.6 million in January, indicating a strong upward trend.

In the first eight months of the fiscal year 2024-25, IT exports surged by 26%, totaling $2.48 billion. Several factors have fueled this growth, including Pakistani firms expanding their global reach, particularly in the Gulf Cooperation Council (GCC) region. Additionally, the State Bank of Pakistan (SBP) increased the retention limit for IT exporters’ foreign currency accounts from 35% to 50%, allowing companies to keep more earnings abroad for reinvestment. The stability of the Pakistani Rupee has also encouraged IT firms to repatriate a higher share of their revenue. Pakistani IT companies have been actively participating in global tech events like LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025 to strengthen their international presence.

A major policy shift in FY25 is the SBP’s introduction of the Equity Investment Abroad (EIA) category. Under this initiative, IT exporters can use up to 50% of their foreign currency proceeds to acquire shares in overseas companies. This move aims to boost investor confidence and encourage businesses to bring back more earnings to Pakistan. In February, net IT exports (exports minus imports) stood at $278 million, reflecting a 21% year-on-year increase, though slightly down by 1% from January. These numbers are still higher than the 12-month average of $265 million, showing consistent growth.

Looking ahead, analysts predict Pakistan’s IT exports will grow by 10-15% in FY25, potentially reaching $3.5-$3.7 billion. The government, under its “Uraan Pakistan” economic plan, aims to increase IT exports to $10 billion by 2029, targeting an annual growth rate of 28%. With supportive policies, global expansion, and a stronger IT ecosystem, Pakistan’s technology sector is set to play a key role in economic growth.