Pakistan’s Information Technology (IT) sector experienced a robust growth in exports, with a 32% year-on-year (YoY) increase to $257 million in February 2024, despite a slight 3% month-on-month (MoM) decline.
According to a report, the February figures surpassed the previous 12-month average of $233 million, indicating a strong upward trajectory. The annual forecast suggests IT exports may surpass the $3 billion mark for the fiscal year 2024 (FY24).
This yearly growth in IT exports is backed by a steady policy adjustment by the State Bank of Pakistan (SBP), which increased the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%.
Additionally, the stable Pakistani rupee (PKR) has motivated IT companies to repatriate and deposit their foreign earnings into local accounts.
The minor MoM downturn in IT exports is linked to February’s reduced working days — 19, compared to January’s 23. The reported export numbers reflect the remittances to Pakistan by its technology sector.
For the first eight months (July-Feb) of FY24, IT exports reached $2.0 billion, marking a 15% YoY increase from $1.7 billion in the same period last year.
Net IT exports also saw significant growth, with a 31% YoY increase to $230 million in February, and a 13% YoY increase to $1.7 billion in 8MFY24.
In response to the growing IT sector, the government, under Prime Minister Sharif, has emphasized maximizing the country’s IT export potential, urging for a detailed strategy to enhance export figures.
Finance Minister Muhammad Aurangzeb, in a recent statement, predicted IT exports could reach as high as $3.5 billion this fiscal year.
Despite the optimism, achieving the government’s ambitious target remains a challenge, with projections suggesting gross IT exports for FY24 could align closer to $3 billion, up from $2.6 billion last year.
