Pakistan’s IT Exports Up 21% in 10 Months of FY25

Pakistan’s information technology exports reached US$ 317 million in April 2025, reflecting a 2 percent year-on-year increase, though down 7 percent month-on-month. According to Topline Securities, the April figure is slightly above the 12-month average of US$ 314 million, continuing a strong trend of export growth for the 19th straight month since October 2023. On a daily basis, IT export proceeds for April stood at US$15.9 million, compared to US$ 18.0 million in March. Cumulatively, IT exports for the first ten months of FY25 (July–April) have reached US$ 3.1 billion, showing a robust 21 percent increase from the same period last year. The year-on-year rise is attributed to four main factors: expansion of the global client base by Pakistani IT companies, particularly in the GCC region; the State Bank of Pakistan’s decision to raise the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 percent to 50 percent; the allowance for equity investments abroad through these accounts; and relative exchange rate stability, which has encouraged repatriation of export earnings. Pakistani IT firms remain actively engaged with international markets, with prominent players recently participating in LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025. A survey conducted by the Pakistan Software Houses Association (P@SHA) found that 62 percent of IT companies are currently maintaining specialized foreign currency accounts. A key regulatory development in FY25 was the SBP’s introduction of a new category—Equity Investment Abroad (EIA)—specifically for IT exporters. This allows export-oriented IT firms to acquire shareholding in foreign entities using up to 50 percent of the proceeds from their specialized foreign currency accounts. This step is expected to further bolster exporters’ confidence in remitting proceeds back to Pakistan. Net IT exports (exports minus imports) stood at US$288 million in April, reflecting a 2 percent increase year-on-year, though a 7 percent decline month-on-month. This is also above the past 12-month average of US$272 million. The sector is projected to continue its upward trajectory, with expected annual growth of 10–15 percent in FY25, translating to total IT exports of US$3.5–3.7 billion. Under the national economic plan ‘Uraan Pakistan’, the government aims to achieve US$10 billion in annual IT exports by FY29, requiring a compound annual growth rate of 28 percent over the next four years. Among listed companies, Systems Limited (SYS) is viewed as a top pick within the IT sector, currently trading at forecasted price-to-earnings multiples of 14.6x for 2025 and 11.0x for 2026.