Pakistan’s IT sector has reached new heights, with exports hitting a record high of USD 342 million in March 2025. This marks a 12 percent year-on-year increase and mirrors a similar 12 percent rise on a month-on-month basis, showcasing the sector’s impressive growth. The remarkable performance not only surpasses expectations but also exceeds the 12-month average of USD 311 million, continuing an 18-month streak of growth that started in October 2023.
The IT sector’s export performance in the first nine months of fiscal year 2025 (9MFY25) stands at a total of USD 2.8 billion, reflecting a 24 percent increase compared to the same period last year. This consistent upward trend demonstrates the growing global demand for Pakistan’s IT services and products. March 2025 alone saw export proceeds averaging USD 18 million per day, a significant increase from the USD 16.1 million recorded in February.
The continuous growth of IT exports is attributed to a variety of factors that have collectively enhanced the competitiveness of Pakistani IT firms in the global market. Key among these is the expansion of the global client base, particularly in the Gulf Cooperation Council (GCC) region, where demand for IT solutions has surged. Moreover, the recent policy changes by the State Bank of Pakistan have played a crucial role. By raising the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent and allowing equity investment abroad using these funds, the government has significantly bolstered exporters’ ability to reinvest their earnings.
These changes have encouraged a higher level of confidence among IT firms, motivating them to repatriate a larger share of their profits. Additionally, the relative stability of the Pakistani rupee has further incentivized exporters to bring their earnings back into the country. Pakistani IT firms have also been increasingly active in engaging with international markets, with notable participation in global events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025. According to a recent survey by P@SHA, 62 percent of IT companies now maintain specialized foreign currency accounts, underscoring the importance of these accounts for businesses engaged in international trade.
A significant policy shift in fiscal year 2025 has been the introduction of a new category by the State Bank of Pakistan known as Equity Investment Abroad (EIA). This allows export-oriented IT companies to acquire stakes in foreign entities using up to 50 percent of their foreign currency proceeds. This policy is expected to further enhance the confidence of IT firms in remitting their earnings, thus strengthening the overall financial stability of the sector. Net IT exports, which represent the difference between exports and imports, stood at USD 311 million in March 2025, reflecting a 13 percent year-on-year increase and a 12 percent month-on-month rise. This figure also surpasses the 12-month average of USD 269 million, reinforcing the sector’s robust performance.
Looking ahead, analysts project that the IT sector will continue to experience significant growth, with expectations of annual growth rates ranging between 10 to 15 percent for fiscal year 2025. This could potentially push total IT exports to between USD 3.5 billion and USD 3.7 billion. Under the government’s ambitious ‘Uraan Pakistan’ economic strategy, the target for IT exports has been set at USD 10 billion by fiscal year 2029, which implies a compound annual growth rate (CAGR) of 28 percent. This goal highlights the government’s commitment to further developing the IT sector and expanding Pakistan’s footprint in the global digital economy. Within the IT sector, Systems Limited (SYS) has emerged as a top investment pick. The company’s stock is currently trading at a forecasted price-to-earnings multiple of 13.4x for fiscal year 2025 and 10.1x for fiscal year 2026, making it an attractive option for investors looking to capitalize on the growth potential of Pakistan’s IT industry.
