Pakistan’s information technology exports in May 2025 reached US$329 million, reflecting a 1 percent year-over-year decline, marking the first contraction in export figures after a continuous 19-month growth streak. Despite the marginal YoY dip, the monthly numbers posted a 4 percent improvement compared to April 2025 and remained above the 12-month average of US$314 million, according to data shared by Topline Securities.
The export proceeds averaged US$16.5 million per day in May, compared to US$15.9 million in the preceding month, demonstrating consistent performance on a daily basis. The cumulative IT exports for the first eleven months of FY25 now stand at approximately US$3.5 billion, representing a 19 percent YoY increase.
This significant growth over the fiscal year has been fueled by various regulatory and market developments. One major driver has been the expansion of Pakistani IT firms’ client base, especially in the Gulf Cooperation Council (GCC) region. Additionally, State Bank of Pakistan’s revision of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent has empowered exporters to manage a greater portion of their earnings. The policy also allows equity investments abroad using these accounts, increasing flexibility and fostering international expansion.
Further contributing to the export uptick is the relative stability of the Pakistani rupee in recent months. This has motivated IT firms to repatriate a larger share of their earnings to Pakistan. The presence of Pakistani IT firms at international technology platforms such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025 reflects their active efforts to maintain global client relations and unlock new opportunities.
PASHA’s recent survey highlights that around 62 percent of IT firms are currently operating specialized foreign currency accounts. An important regulatory milestone achieved in FY25 is SBP’s introduction of a new Equity Investment Abroad (EIA) category. Under this policy, export-oriented IT firms can now acquire equity stakes in overseas companies using up to 50 percent of the retained foreign currency earnings. Industry experts suggest this development has improved exporter sentiment and confidence in remitting proceeds back to Pakistan.
In terms of net IT exports — the difference between exports and imports — Pakistan recorded US$294 million in May 2025. This represents a 1 percent YoY increase and a 2 percent MoM improvement, surpassing the last 12-month net export average of US$272 million.
According to industry channel checks, IT exports for the full FY25 are projected to close around US$3.8 billion, a 17 percent increase compared to the previous fiscal year. Under the Uraan Pakistan national economic roadmap, the government has set an ambitious target of reaching US$10 billion in IT exports by FY29. This goal requires an average compound annual growth rate of 28 percent over the next four years, reflecting the critical role the sector is expected to play in the country’s digital economy.
