Pakistan’s IT sector continues to demonstrate remarkable growth, with IT exports reaching a record $305 million in February 2025, reflecting a 19% increase compared to the same month last year. Despite a 3% month-on-month decline from January due to the shorter month, this marks the 17th consecutive month of year-on-year growth since October 2023. The consistent upward trend highlights the resilience and expansion of Pakistan’s IT industry in the global market.
For the first eight months of fiscal year 2025, total IT exports have surged to $2.48 billion, representing a 26% increase from the previous year. This growth is driven by increased global demand for Pakistani IT services, the expansion of client bases in key international markets, and supportive policy measures aimed at enhancing the sector’s competitiveness. Daily export proceeds averaged $16.1 million in February, up from $13.6 million in January, indicating steady momentum despite monthly fluctuations.
Industry experts attribute this impressive growth to several factors, including the expansion of IT firms into the GCC region, where demand for digital solutions is on the rise. Additionally, policy changes by SBP have provided a significant boost to IT exporters. The central bank’s decision to increase the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% has encouraged companies to repatriate a larger portion of their foreign earnings. This move, coupled with the allowance for equity investments abroad through these accounts, has enhanced investor confidence and provided greater flexibility for Pakistani IT firms to scale their international operations.
Pakistan’s IT firms have also been actively engaging with global clients through major industry events such as LEAP 2025 in Saudi Arabia and the Web Summit in Qatar. These platforms have enabled local companies to showcase their expertise, secure contracts, and attract foreign investment. A recent survey by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT firms maintain specialized foreign currency accounts, demonstrating the sector’s adaptability to evolving financial regulations.
A key policy initiative in fiscal year 2025 is the introduction of a new category by the SBP for Equity Investment Abroad (EIA), specifically designed for export-oriented IT firms. This allows IT exporters to acquire shareholding in foreign entities using up to 50% of their proceeds from specialized foreign currency accounts. The move aims to incentivize companies to reinvest in international markets while ensuring continued inflows of foreign exchange into Pakistan’s economy. Net IT exports—calculated as exports minus imports—stood at $278 million in February, marking a 21% year-on-year increase, though slightly lower than the previous month. This figure remains above the 12-month average of $265 million, reflecting the sector’s sustained strength.
Looking ahead, analysts at Topline Securities forecast that the IT sector will maintain its growth trajectory, with expected annual growth of 10-15% for fiscal year 2025, potentially pushing total IT exports to between $3.5 billion and $3.7 billion. Under the government’s ‘Uraan Pakistan’ national economic plan, the country has set an ambitious target of $10 billion in IT exports by fiscal year 2029, requiring a compound annual growth rate (CAGR) of 28%. With strong policy support, increasing global demand, and the continued expansion of Pakistan’s IT footprint in international markets, the country’s technology sector is well-positioned to play a pivotal role in economic growth. The record-breaking performance in February reaffirms Pakistan’s potential as a key player in the global digital economy, with further opportunities on the horizon.
