Pakistan’s information technology (IT) exports dropped marginally by 1% year-on-year (YoY) to $329 million in May 2025, marking the first YoY decline in 19 consecutive months of growth, according to data compiled from industry sources. On a month-on-month (MoM) basis, however, exports rose 4%, outperforming the 12-month rolling average of $314 million.
The daily average of IT export proceeds for May stood at $16.5 million, slightly higher than April’s $15.9 million.
Cumulatively, IT exports for the first eleven months of FY2024-25 (11MFY25) reached approximately $3.5 billion, reflecting a 19% increase from the same period last year. This growth has been underpinned by a combination of external expansion and domestic policy support, including improved foreign currency retention limits and regulatory reforms.
Several factors contributed to the strong annual performance:
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Pakistani IT firms have expanded their global client base, particularly in the GCC region.
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The State Bank of Pakistan (SBP) raised the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts (ESFCAs) from 35% to 50%.
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Exporters are now allowed to make equity investments abroad using proceeds from these accounts.
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The relative stability of the Pakistani rupee has encouraged exporters to repatriate more earnings.
Industry outreach also played a role, with Pakistani companies participating in major global events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025 to attract international business.
According to a recent survey by the Pakistan Software Houses Association (P@SHA), 62% of IT companies are maintaining specialized foreign currency accounts to benefit from the SBP’s supportive measures. A key development this fiscal year is the introduction of a new category — Equity Investment Abroad (EIA) — allowing IT exporters to acquire shareholding in offshore entities using up to half of their foreign earnings.
Net IT exports (exports minus imports) for May clocked in at $294 million, rising 1% YoY and 2% MoM. This figure also surpassed the 12-month average of $272 million.
Looking ahead, industry estimates suggest that total IT exports for FY25 may reach $3.8 billion — a projected 17% YoY increase. Under the government’s ‘Uraan Pakistan’ initiative, the national target for IT exports has been set at $10 billion by FY29, implying a compound annual growth rate (CAGR) of 28% over the next four years.
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