Pakistan’s tech sector thrives with 18% export growth in January

Pakistan's technology exports demonstrated robust growth in January 2025, contributing significantly to the expansion of the overall services sector, according to data released by the State Bank of Pakistan.

Tech exports reached $313 million in January, reflecting an 18% increase compared to $265 million in the same month last year. While this figure represents a 10% decrease from the record $348 million achieved in December 2024, the sector maintains a strong upward trend.

The technology sector remains a vital source of export earnings for Pakistan. Cumulative tech exports for the first seven months of fiscal year 2025 totaled $2.177 billion, a substantial 26% rise from $1.721 billion during the corresponding period in the previous fiscal year.

This growth underscores the sector's resilience and potential for further expansion. The State Bank of Pakistan has directed banks to ease the process of opening accounts in both PKR and foreign currency for freelancers and IT companies, enhancing accessibility for the sector.

These measures are part of a broader strategy to boost the sector's exports from $3.2 billion in 2024 to $4.2 billion in 2025.

The technology sector's growth is also supported by the significant number of freelancers in Pakistan, who contribute 15% of the country's IT exports. However, only 38,000 freelancers currently hold bank accounts, and efforts are underway to retain these account holders and encourage more freelancers to open accounts.

Overall, the strong performance of Pakistan's technology exports in January 2025 reflects the sector's potential to drive economic growth and contribute to the country's development goals.According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies are maintaining specialized foreign currency accounts.

A major development in FY25 is that SBP has added a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies.

an analyst at Topline Securities said IT exporters can now acquire interest (shareholding) in entities abroad by utilizing up to 50% proceeds from specialized foreign currency accounts. This development will further boost confidence of IT exporters to remit proceeds back to Pakistan.