Pakistan’s monthly IT exports reached $324 million in November 2024, reflecting a 25% year-on-year (YoY) increase, though slightly down by 2% month-on-month (MoM), according to data compiled by Topline Securities.
These exports surpassed the 12-month average of $295 million, marking the 14th consecutive month of YoY growth since October 2023.
The first five months of FY25 saw IT exports rise to $1.53 billion, up 33% YoY.
Key drivers included an expanded global client base, particularly in the Gulf Cooperation Council (GCC) region, and policy measures such as the State Bank of Pakistan’s (SBP) relaxation of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%.
Additionally, the stability of the Pakistani Rupee (PKR) encouraged IT exporters to bring a higher portion of their profits back to the country.
The slight MoM decline in November’s IT exports was attributed to fewer working days—21 in November compared to 23 in October. Despite this, daily export proceeds rose to $15.4 million from $14.3 million in the previous month.
Pakistani IT companies continued engaging globally, participating in events like the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference. A recent Pakistan Software Houses Association (P@SHA) survey found that 62% of IT companies maintain specialized foreign currency accounts.
A notable development this fiscal year was the SBP introducing a new Equity Investment Abroad (EIA) category, allowing export-oriented IT companies to acquire shares in foreign entities using up to 50% of their foreign currency account proceeds. This move is expected to bolster exporter confidence and encourage remittance of profits back to Pakistan.
Net IT exports for November stood at $287 million, a 27% YoY increase, and higher than the 12-month average of $261 million. Analysts project the IT sector will sustain its growth momentum, estimating annual exports of $3.5-$3.7 billion for FY25—a growth rate of 10-15%.
According to Topline Securities, Systems Limited (SYS) remains a top pick for investors, with the company trading at 2024E and 2025F price-to-earnings ratios of 22.8x and 16.5x, respectively.
