Pakistan’s IT exports rise 13% in August

Pakistan’s information technology exports rose to USD 337 million in August, up 13% year-on-year, though down 5% compared with July, according to official data released Thursday.

The August figure is higher than the past 12-month average of USD 326 million. Daily export proceeds stood at USD 14.6 million, compared with USD 15.4 million in July.

For the first two months of the current fiscal year, IT exports totaled USD 692 million, reflecting 18% growth compared with the same period a year earlier.

Analysts said the year-on-year growth in August was supported by several factors: a growing client base for Pakistani IT firms in global markets, particularly the Gulf; the State Bank of Pakistan’s (SBP) relaxation of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%; new allowances for equity investment abroad through these accounts; and stability in the Pakistani rupee, which encouraged exporters to repatriate more earnings.

A survey by the Pakistan Software Houses Association (P@SHA) found that 62% of IT companies are now maintaining specialized foreign currency accounts.

Topline Securities noted that the SBP’s introduction of Equity Investment Abroad (EIA), which allows exporters to acquire interests in overseas entities using up to 50% of proceeds retained in foreign accounts, has boosted confidence and encouraged higher remittances back to Pakistan.

Net IT exports, calculated as exports minus imports, stood at USD 306 million in August. This represented a 19% increase year-on-year but a 4% decline month-on-month. The August figure was also above the 12-month average of USD 286 million.

The government has set a target of USD 5 billion in IT exports for fiscal year 2026. Brokerage forecasts suggest growth of 18-20% for the year. Under the “Uraan Pakistan” national economic plan, authorities have also set a target of USD 10 billion by FY29, implying a compound annual growth rate of 27%.