Pakistan's IT exports surge to $298 million in August

Pakistan Information Technology (IT) exports surged in August as IT exporters have successfully grown their client base globally, particularly in the GCC region.

In August, Pakistan's IT exports increased 27% to $298 million compared to $235 million in the same month last year. These exports surpassed the 12-month average of $275 million.

Khurram Schehzad at Alpha Beta Core said the State Bank of Pakistan's relaxation of the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% provided a boost.

Besides, the stability of the Pakistani Rupee (PKR) has encouraged IT exporters to repatriate a larger portion of their profits.

An analyst at Topline Securities said the Pakistani IT companies had been proactive in engaging with global clients, with leading firms participating in major events such as London Tech Week 2024, Collision Canada 2024, and Black Hat, USA.

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

A significant development in July was the central bank introducing a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies.

This allows IT exporters to acquire shareholding in foreign entities using up to 50% of proceeds from their specialized foreign currency accounts, further boosting their confidence to remit proceeds back to Pakistan.

Net IT exports (exports minus imports) for August stood at US$257 million.

Analysts expect the IT sector to maintain its growth trajectory, with projected growth of 10-15% for FY25.