Pakistan’s IT and IT-enabled services (ITeS) exports have witnessed a significant surge, reaching $292 million in September 2024. This represents a 42 percent increase compared to the same period last year.
SBP released the latest data, highlighting the growth in technology exports, which now contribute 44 percent of the overall services exports. In the first quarter of fiscal year 2024-25, IT exports grew by 34 percent to $876 million.
The fiscal year 2023-24 marked a historic milestone for Pakistan’s IT exports, reaching an all-time high of $3.223 billion. This represented a 24 percent increase compared to the previous year.
Minister of State for IT and Telecommunication Shaza Fatima Khawaja attributed the surge in IT exports to several factors. She highlighted the growing global client base of Pakistani IT companies, particularly in the Gulf Cooperation Council (GCC) region. Additionally, the relaxation of the permissible retention limit by the SBP, increasing it from 35 percent to 50 percent in the Exporters’ Specialized Foreign Currency Accounts, has encouraged IT exporters to repatriate a higher portion of their earnings to Pakistan.
A survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62 percent of IT companies maintain specialized foreign currency accounts.
In July 2024, a significant development occurred with the SBP introducing a new category of Equity Investment Abroad (EIA) specifically for export-oriented IT companies. This allows IT exporters to invest up to 50 percent of their proceeds from specialized foreign currency accounts in foreign entities. This measure is expected to further boost the confidence of IT exporters in remitting their earnings back to Pakistan.
The surge in IT exports reflects Pakistan’s growing prominence in the global technology landscape and its potential to contribute significantly to the country’s economic growth.
