Pakistan’s IT exports dip 1% in May, breaking 19-month growth streak

Pakistan’s information technology (IT) exports in May recorded a slight year-on-year decline of 1% to $329 million, breaking a 19-month streak of continuous growth. However, the figure reflects a 4% increase compared to April’s exports and exceeds the 12-month average of $314 million.

Daily export proceeds in May stood at $16.5 million, up from $15.9 million in April, according to data reviewed by Topline Securities.

During the first 11 months of the current fiscal year, Pakistan’s IT exports reached $3.5 billion, a 19% rise compared to the same period last year.

According to a report by brokerage Topline Securities, the sector’s growth has been attributed to several policy and market developments: expansion into Gulf Cooperation Council (GCC) markets, an increase in the permissible retention limit by the State Bank of Pakistan (SBP) from 35% to 50%, the introduction of an equity investment abroad facility, and PKR stability, which has encouraged exporters to repatriate more profits.

Pakistani IT firms have ramped up global engagement, with many participating in major events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025.

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

In a notable policy shift, the SBP has introduced a new “Equity Investment Abroad” category, allowing IT exporters to use up to 50% of their retained earnings to acquire equity in overseas ventures. Industry analysts believe this step will further boost confidence in remitting export proceeds.

Net IT exports (exports minus imports) rose to $294 million in May — a 1% increase year-over-year and 2% month-over-month — outperforming the 12-month average of $272 million.

Industry insiders estimate total IT exports will reach $3.8 billion by the end of FY25, marking a 17% year-on-year increase. Under its “Uraan Pakistan” economic strategy, the government has set a target of $10 billion in IT exports by FY29, requiring a compound annual growth rate (CAGR) of 28%.