Pakistan’s IT exports boost by 37% YoY to $306mn in March 2024 

Pakistan’s information technology exports increased by 37% year-on-year (YoY) and by 19% month-on-month (MoM) to $306 million in March 2024. 

These are the highest-ever exports in a single month with the previous highest being $303 million in December 2023. 

These monthly IT exports in March are also higher than the last 12-month average of $238 million.

According to Topline Pakistan Research, this yearly jump in IT exports is due to a relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts, and a stable local currency which encouraged IT companies to repatriate their foreign income and deposit it in local accounts.

During the first nine months (July-March) of the ongoing fiscal year, IT exports clocked in at $2.28 billion, up by 17% YoY compared to $1.94 billion recorded in 9MFY23.

Net IT exports (exports-imports) also recorded an increase of 37% YoY and 20% MoM to $275 million in March 2024. 

These net IT exports in March are also higher than the last 12-month average of $208 million. 

In 9MFY24 net IT exports recorded a growth of 16% YoY to $1.99 billion.

In a recent interview, Finance Minister Muhammad Aurangzeb stated that IT exports are likely to reach $3.5 billion this year.

“Although there has been a growth in gross IT exports during 9MFY24, the government's target appears challenging. We anticipate that gross IT exports for FY24 will likely fall around $3.0 billion compared to $2.6 billion recorded last year,” read the brokerage note.