Pakistan’s IT sector recorded the highest-ever monthly exports of $348 million in December 2024, reflecting a 15% year-on-year (YoY) increase from the same month last year, according to data compiled by Topline Pakistan Research.
IT sector exports also increased by 12% month-on-month (MoM) from November 2024. This marks the 15th consecutive month of YoY growth in IT exports, beginning in October 2023, and surpasses the 12-month average of $299 million.
Cumulatively, IT exports in the first half of FY25 (1HFY25) reached $1.86 billion, up by 28% compared to the same period last year. Export proceeds for December averaged $16.6 million per day, an increase from $14.8 million recorded in November.
According to Topline Research, the YoY growth in exports is attributed to several factors, including an expanding global client base, particularly in the Gulf Cooperation Council (GCC) region, and recent regulatory relaxations by the State Bank of Pakistan (SBP). The SBP increased the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%, and introduced a new category—Equity Investment Abroad (EIA)—allowing IT exporters to acquire equity in foreign entities using up to 50% of their foreign currency account proceeds.
These developments have bolstered the confidence of IT exporters and encouraged them to bring a greater portion of their profits back to Pakistan. According to a survey by the Pakistan Software Houses Association (P@SHA), 62% of IT companies are now maintaining specialized foreign currency accounts.
Pakistani IT companies have also ramped up global engagement by participating in international forums such as the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference.
While gross IT exports reached record highs, net IT exports (exports minus imports) for December 2024 stood at $222 million, showing a 16% YoY decline and falling below the 12-month average of $265 million.
Looking ahead, the IT sector is expected to maintain its growth trajectory, with an anticipated annual growth of 10-15% for FY25, potentially reaching $3.5-3.7 billion. Under the government’s ‘Uraan Pakistan’ economic plan, the target is set at $10 billion in IT exports by FY29, requiring a compound annual growth rate (CAGR) of 28%.
Within the sector, Systems Limited (SYS) has emerged as a preferred performer, trading at forward price-to-earnings ratios of 15.3x for 2024 and 11.4x for 2025. The company remains a standout player in the rapidly growing industry.
