KARACHI: Pakistan’s technology sector continues to build momentum, as the country posted its highest-ever monthly IT export proceeds in March 2025, clocking in at US$342 million. This reflects a 12% year-on-year and month-on-month increase, underlining both rising global demand and supportive domestic policy measures. The figure is also well above the 12-month trailing average of US$311 million.
The latest number brings total IT exports in the first nine months of FY2025 (9MFY25) to US$2.8 billion, up 24% year-on-year, positioning the sector firmly on track to surpass last year’s full-year performance.
Pakistan has now recorded 18 consecutive months of year-on-year IT export growth—a trend that began in October 2023. Industry observers attribute this resilience to a combination of strategic factors, including regulatory reforms, currency stability, and an expanding international footprint.
A key factor has been the State Bank of Pakistan’s (SBP) relaxation in the permissible foreign currency retention limit, which now allows IT exporters to retain up to 50% of their export proceeds in Specialised Foreign Currency Accounts—up from 35% previously. This flexibility enables companies to reinvest profits more easily and manage foreign operations efficiently.
In a further boost, SBP has introduced a dedicated category titled Equity Investment Abroad (EIA). Under this regime, export-oriented IT firms can acquire shareholding in overseas ventures using their foreign currency accounts. This is seen as a step towards helping Pakistani tech companies scale up internationally and forge strategic partnerships, particularly in Gulf countries and beyond.
Additionally, a stable exchange rate has encouraged exporters to repatriate a larger share of earnings—a critical factor in the sustained increase in monthly inflows.
According to a recent survey by the Pakistan Software Houses Association (P@SHA), around 62% of local IT companies maintain these specialised foreign accounts, showing how the sector has adapted to new financial tools for global expansion.
March also saw a rise in net IT exports (exports minus imports) to US$311 million, up 13% YoY and 12% MoM. These figures underscore improved export profitability and lower dependence on imported software or services.
With just three months left in FY2025, analysts project full-year IT exports to touch US$3.5 to 3.7 billion, implying a 10–15% annual growth.
Looking further ahead, the government’s ‘Uraan Pakistan’ economic plan aims to elevate annual IT exports to US$10 billion by FY2029, which would require a compound annual growth rate (CAGR) of approximately 28% over the next four years. While ambitious, recent trends suggest that the sector is well-positioned to pursue this target—provided policy continuity and investor confidence are maintained.
Analysts at Topline Research maintain a bullish stance on the sector, citing Systems Limited (SYS) as their top pick. The firm is currently trading at 13.4x and 10.1x forward price-to-earnings multiples for 2025 and 2026, respectively, indicating room for upside as Pakistan’s digital economy matures.
