Pakistan IT exports hit highest-ever value of $366 million

Pakistan has recorded its highest-ever monthly IT exports of $366 million in September, up 25% compared with the same month last year.

According to the State Bank of Pakistan data, IT exports in September are also higher than the last 12-month average of $326 million.

During the first quarter of the current fiscal year, IT exports rose by 21% to $1.06 billion, the data said.

Export proceeds per day were recorded at $16.64 million in September, compared to $14.65 million in August.

Sania Irfan, an Equity Research Analyst at Topline Securities, said growth in IT exports during September is due to the growing global clients’ base of Pakistani tech companies, especially in the Gulf region. She added the State Bank of Pakistan has relaxed the permissible retention limit in the Exporters’ Specialized Foreign Currency Accounts from 35% to 50%. The growth in IT exports was also spurred by the permission for equity investment abroad through these foreign currency accounts and the stability in the USD-PKR exchange rate, which encouraged IT exporters to bring a higher portion of their profits back to Pakistan.

According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies are maintaining specialized foreign currency accounts.

Irfan said that SBP’s introduction of Equity Investment Abroad (EIA), allowing IT exporters to acquire interest in entities abroad using up to 50% proceeds from specialized foreign currency accounts, will continue to boost the confidence of IT exporters to remit proceeds back to Pakistan.

Net IT exports (exports-imports) stood at $330 million in September, an increase of 29% year-on-year and 8% month-on-month. The number is higher than the last 12-month average of $286 million.

The government has set the target of IT exports in fiscal year 2026 at $5 billion, a growth estimate of 31% from $3.8 billion in FY25. However, Topline Securities estimated that the growth will be around 18-20%, essentially meaning the government’s target will not be achieved.

Under ‘Uraan Pakistan’ national economic plan, the government has set a target of $10bn in IT exports by FY29. This implies a target cumulative annual growth rate of 27% for four years.