Pakistan’s IT exports reached $298 million in August 2024, up by 27% year-on-year (YoY) and 4% month-on-month (MoM), according to the latest data compiled by Topline Pakistan Research.
The August export figures also exceeded the 12-month average of $275 million, reflecting strong growth in the sector.
The YoY increase is attributed to several factors, including the expansion of IT companies’ global client base, particularly in the Gulf Cooperation Council (GCC) region, the State Bank of Pakistan’s (SBP) decision to increase the retention limit for export earnings from 35% to 50%, and the relative stability of the Pakistani rupee. These factors have encouraged IT exporters to bring more profits back to Pakistan.
The MoM growth in exports was largely due to an increase in working days in August, with 21 days compared to July’s 20 days. Daily export proceeds for August were recorded at $14.2 million, slightly lower than July’s $14.3 million.
Pakistan’s IT sector continues to make strides in international markets, with leading companies recently participating in major global events such as London Tech Week 2024, Collision Canada 2024, and Black Hat, USA.
A survey by the Pakistan Software Houses Association (P@SHA) indicated that 62% of IT companies maintain specialized foreign currency accounts. In a significant development in July 2024, the SBP introduced a new category of Equity Investment Abroad (EIA) for IT exporters, allowing them to acquire shareholding in foreign entities using up to 50% of proceeds from specialized accounts. This move is expected to further boost confidence among IT exporters.
Net IT exports (exports minus imports) stood at $257 million for August 2024, up 26% YoY. This figure also surpassed the 12-month average of $241 million.
Industry analysts predict that the IT sector will continue its upward trajectory, with expected growth of 10-15% in FY25, pushing total exports to $3.5-3.7 billion. Among the leading companies, Systems Limited (SYS) remains a top performer, trading at a forward price-to-earnings ratio (PE) of 12x for 2024 and 9x for 2025.
