Pakistan’s information technology export sector continued its upward trajectory in April 2025, with export proceeds hitting US$317 million for the month. While this figure marked a 2 percent increase compared to April last year, it showed a 7 percent decline from March 2025. Despite the month-on-month dip, the April export figure remained slightly above the 12-month average of US$314 million, maintaining a solid growth trend that has been consistent for 19 straight months since October 2023.
On a daily average basis, IT exports during April stood at US$15.9 million, compared to US$18.0 million in March. The cumulative figure for the first ten months of FY25 (July–April) has now reached US$3.1 billion, reflecting a significant 21 percent year-on-year increase. This impressive growth is being driven by a combination of regulatory incentives, increased market access, and macroeconomic stability.
One of the key contributing factors has been the expansion of Pakistani IT companies into global markets, especially within the Gulf Cooperation Council (GCC) region. This has been complemented by supportive policy measures from the State Bank of Pakistan (SBP), including an increase in the retention limit for Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent. Furthermore, exporters have been granted the ability to make equity investments abroad using these accounts, enhancing their international competitiveness and long-term growth strategies. The relative stability of the exchange rate has also played a role in encouraging the repatriation of export proceeds.
A recent survey by the Pakistan Software Houses Association (P@SHA) revealed that 62 percent of IT companies are currently maintaining specialized foreign currency accounts, underlining the industry’s positive response to these reforms. Another noteworthy regulatory development this fiscal year was the SBP’s introduction of a new category—Equity Investment Abroad (EIA)—which specifically caters to IT exporters. This allows them to acquire shareholding in foreign entities using up to 50 percent of their proceeds from specialized accounts. The move is expected to further enhance confidence among exporters, encouraging them to bring earnings back into the country.
In April 2025, net IT exports—calculated as total exports minus imports—stood at US$288 million, which represented a 2 percent increase year-on-year. Although there was a 7 percent decline compared to March, this figure still exceeded the 12-month average of US$272 million, reinforcing the sector’s resilience.
Looking ahead, Pakistan’s IT exports are projected to reach between US$3.5 billion and US$3.7 billion by the end of FY25, supported by an expected annual growth rate of 10 to 15 percent. These figures align with the goals set under the national economic plan ‘Uraan Pakistan’, which envisions taking annual IT exports to US$10 billion by FY29. Achieving this target would require a compound annual growth rate of 28 percent over the next four years.
In the stock market, Systems Limited (SYS) continues to be seen as a top-performing company in the IT sector. The firm is currently trading at forecasted price-to-earnings ratios of 14.6x for 2025 and 11.0x for 2026, indicating strong investor confidence based on its growth prospects and international business footprint.
With consistent policy backing, global outreach, and a conducive regulatory environment, Pakistan’s IT export sector remains a promising engine for the country’s economic growth and digital transformation.
