IT Exports Surge by 28% to $1.86 Billion in First Half of FY25

Pakistan’s IT sector achieved a significant milestone in December 2024, recording its highest-ever monthly export value of $348 million. This represents a 15% year-on-year (YoY) increase compared to December 2023, according to data from Topline Pakistan Research.

The sector also posted a robust 12% month-on-month (MoM) growth from November 2024, reflecting its sustained upward trajectory. Notably, this is the 15th consecutive month of YoY growth in IT exports, a streak that began in October 2023.

Cumulatively, IT exports totalled $1.86 billion in the first half of FY25, a 28% increase over the same time the previous year. The average daily export revenue for December was $16.6 million, up from $14.8 million in November.

Regulatory Changes Boost IT Export Growth

Topline Research attributes the YoY growth in exports to a number of causes, including the State Bank of Pakistan’s (SBP) recent regulatory easing and a rising worldwide clientele, especially in the Gulf Cooperation Council (GCC) area. In addition to creating a new category called stock Investment Abroad (EIA), which enables IT exporters to purchase stock in overseas companies with up to 50% of the revenues from their foreign currency accounts, the SBP raised the allowable retention limit in Exporters’ Specialized overseas Currency Accounts from 35% to 50%.

IT exporters now feel more confident and are motivated to return a larger percentage of their earnings to Pakistan because of these improvements. 62% of IT businesses now hold specialized foreign currency accounts, according to a study conducted by the Pakistan Software Houses Association (P@SHA).

Pakistani IT companies have significantly increased their global presence by taking part in international events like the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference. Despite achieving record highs in gross IT exports, net IT exports for December 2024 were reported at $222 million, reflecting a 16% year-over-year decline and dropping below the 12-month average of $265 million.

With an estimated yearly increase of 10-15% for FY25, the IT industry is predicted to continue on its current development trajectory and might reach $3.5-3.7 billion. The goal of $10 billion in IT exports by FY29 is established under the government’s “Uraan Pakistan” economic strategy, which calls for a compound annual growth rate (CAGR) of 28%.

Within the sector, Systems Limited (SYS) has emerged as a top performer, with forward price-to-earnings ratios of 15.3x for 2024 and 11.4x for 2025. The corporation remains a dominant force in the constantly expanding sector.