Pakistan’s Information Technology (IT) exports have soared to $3.2 billion in the fiscal year 2024, marking a robust 24% year-on-year increase from the previous fiscal’s $2.59 billion.
The latest data, released by the State Bank of Pakistan, underscores the sector’s resilience and growth amidst global economic challenges.
For June 2024 alone, Pakistan recorded IT exports worth $298 million, up by 33% compared to the same period last year. Despite a month-on-month decline of 10%, June’s exports surpassed the twelve-month average of $262 million, highlighting sustained momentum in the sector.
Several factors have contributed to this surge in IT exports. Firstly, Pakistani IT firms have expanded their footprint in the Gulf Cooperation Council (GCC) countries, particularly Saudi Arabia, where demand for IT services has been steadily increasing.
Secondly, the State Bank of Pakistan’s decision to raise the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% has encouraged IT exporters to repatriate higher profits back to Pakistan, boosting overall export figures.
Lastly, a stable Pakistani rupee (PKR) has further incentivized IT companies to conduct business and bring earnings back home.
Throughout FY24, Pakistan’s net IT exports, calculated as exports minus imports, amounted to US$2.8 billion, marking a 23% year-on-year increase.
In June 2024, net IT exports reached US$256 million, up by 32% compared to the same period last year and surpassing the twelve-month average of US$230 million.
Industry experts and analysts remain optimistic about the IT sector’s growth trajectory, forecasting a continued expansion of 10-15% for FY25, with anticipated exports ranging between US$3.5 billion to US$3.7 billion.
The Pakistan Software Houses Association (PASHA) conducted a survey revealing that 62% of IT companies are maintaining Special Foreign Currency Accounts, underscoring the sector’s reliance on foreign exchange earnings for sustained growth.
Market observers have highlighted Systems Limited (SYS) as a standout performer within the IT sector, with favorable price-to-earnings ratios of 13x for 2024 and 10x for 2025, making it a preferred investment choice amid the sector’s bullish outlook.
