Pakistan’s IT Exports See First Dip After 19 Months

Pakistan’s booming IT export sector has finally hit a speed bump. In May 2025, the country recorded monthly IT exports worth US$ 329 million, reflecting a 1% year-on-year (YoY) decline, the first dip after 19 consecutive months of growth.

However, the exports still showed a 4% increase month-on-month (MoM) and remained above the 12-month average of US$ 314 million, according to a report by Topline Securities.

Despite the slight YoY drop, daily export inflows remained solid, averaging US$ 16.5 million per day in May, up from US$ 15.9 million in April 2025.

11-Month Performance Shows Strong Growth

Over the first eleven months of FY25 (11MFY25), Pakistan’s IT exports reached approximately US$ 3.5 billion, marking a 19% YoY increase. This growth has been driven by several key factors:

• Expansion of IT firms into GCC markets
• Improved client acquisition globally
• Relaxation in the State Bank of Pakistan’s (SBP) retention limit, raised from 35% to 50% in specialized foreign currency accounts
• Permission for equity investment abroad through these accounts
• PKR stability, which encouraged IT exporters to repatriate more of their foreign income

A game-changing development this fiscal year was SBP’s introduction of a new Equity Investment Abroad (EIA) category for export-oriented IT firms. This allows them to use up to 50% of foreign currency account proceeds to invest in foreign entities, boosting confidence in profit repatriation.

According to a P@SHA survey, 62% of IT companies are currently using specialized foreign currency accounts, leveraging SBP’s relaxed policies to expand globally.

Adding to their global visibility, Pakistani tech firms have actively participated in major international events like LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025, strengthening their position in the global IT landscape.

Net Exports and Future Outlook

Net IT exports (exports minus imports) stood at US$ 294 million in May 2025, showing a 1% YoY and 2% MoM increase. These figures also beat the 12-month average of US$ 272 million, highlighting continued efficiency despite the slowdown.

Looking ahead, industry analysts estimate FY25 IT exports will close at around US$ 3.8 billion, reflecting a 17% YoY growth. Under the government’s ambitious ‘Uraan Pakistan’ economic plan, a target of US$ 10 billion in IT exports by FY29 has been set, which would require a 28% compound annual growth rate (CAGR).

While May 2025 may have marked a pause in Pakistan’s IT export growth streak, strategic policy support, stable currency conditions, and global outreach signal a promising road ahead.