Comment by Riaz Haq on June 11, 2024 at 10:22am

Pakistan’s IT exports boost by 37% YoY to $306mn in March 2024 - Profit by Pakistan Today



https://profit.pakistantoday.com.pk/2024/04/22/pakistans-it-exports...

Pakistan’s information technology exports increased by 37% year-on-year (YoY) and by 19% month-on-month (MoM) to $306 million in March 2024.

These are the highest-ever exports in a single month with the previous highest being $303 million in December 2023.

These monthly IT exports in March are also higher than the last 12-month average of $238 million.

According to Topline Pakistan Research, this yearly jump in IT exports is due to a relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts, and a stable local currency which encouraged IT companies to repatriate their foreign income and deposit it in local accounts.

During the first nine months (July-March) of the ongoing fiscal year, IT exports clocked in at $2.28 billion, up by 17% YoY compared to $1.94 billion recorded in 9MFY23.

Net IT exports (exports-imports) also recorded an increase of 37% YoY and 20% MoM to $275 million in March 2024.

These net IT exports in March are also higher than the last 12-month average of $208 million.

In 9MFY24 net IT exports recorded a growth of 16% YoY to $1.99 billion.

In a recent interview, Finance Minister Muhammad Aurangzeb stated that IT exports are likely to reach $3.5 billion this year.


“Although there has been a growth in gross IT exports during 9MFY24, the government’s target appears challenging. We anticipate that gross IT exports for FY24 will likely fall around $3.0 billion compared to $2.6 billion recorded last year,” read the brokerage note.

Comment by Riaz Haq on October 16, 2024 at 10:08am

Major tech show in Dubai offers Pakistan opportunity to increase IT exports manifolds — envoy


https://www.arabnews.com/node/2575249/pakistan

The annual GITEX Global exhibition is considered one of the world’s largest tech shows that connects industry leaders with major tech and innovation startups
Pakistan's ambassador encourages business leaders, IT professionals to visit the Pakistan pavilion, where 24 exhibitors are showcasing innovative technologies

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Pakistan showcases IT sector's potential at Tech Week Singapore 2024 - Technology - Dunya News


https://dunyanews.tv/en/Technology/843215-pakistan-showcases-it-sec...

(Web Desk) - Pakistan's vibrant technology sector took center stage at Tech Week Singapore 2024, as leading companies from the country presented their cutting-edge software and IT solutions.

High Commissioner Rabia Shafiq inaugurated the Pakistani Pavilion, commending the participants for their commitment to driving innovation and fostering international collaboration.

"Pakistan's IT exports have surpassed $3.2 billion, and events like Tech Week Singapore provide an excellent platform for our companies to showcase their expertise and capabilities to the world," said High Commissioner Shafiq.

"Our presence here demonstrates Pakistan's growing influence in the global technology landscape."

She said, "Pakistani IT companies have proven they are ready to compete globally, and we are excited to see them making an impact at Tech Week Singapore."

Pakistan's participation in Tech Week Singapore 2024 is a joint effort by the Pakistan Software Export Board (PSEB), Pakistan IT Industry Association (P@SHA), and the Trade Development Authority of Pakistan (TDAP).

These organizations collaborate to promote Pakistan's IT industry, catalyzing growth and boosting global competitiveness.

Tech Week Singapore brings together business leaders and visionaries across all technology verticals to learn, network, and shape their organizations' futures.

Tech Week is running from 9-10 Oct 2024. The participation of Pakistani companies in this prestigious event highlights their capability to develop advanced solutions and contribute to the global technology landscape.

Comment by Riaz Haq on February 19, 2025 at 8:35pm

Pakistan’s IT exports surpass $2 billion in first 7 months of FY25 - Profit by Pakistan Today

https://profit.pakistantoday.com.pk/2025/02/18/pakistans-it-exports...

IT sector sees a 27% YoY growth, with January exports hitting $313 million, as new policies fuel export confidence

ISLAMABAD: Pakistan’s IT exports have reached US$ 2.18 billion in the first seven months of fiscal year 2024-25, marking a 27% increase year-over-year (YoY) compared to the same period in the previous year, as reported by the State Bank of Pakistan (SBP).

According to Topline Securities, this achievement marks the 16th consecutive month of YoY growth for the IT export sector, beginning from October 2023.

In January 2025, IT exports totaled US$ 313 million, reflecting an 18% increase YoY, although a 10% drop compared to December 2024. However, January’s export figures surpassed the 12-month average of US$ 303 million.

Export proceeds per day in January were recorded at US$ 13.6 million, down from US$ 16.6 million in December 2024.

The year-over-year growth in IT exports can be attributed to several key factors:
– Expansion of IT companies’ client bases, especially within the Gulf Cooperation Council (GCC) region,
– Relaxation of the permissible retention limit by the State Bank of Pakistan, which increased from 35% to 50% in Exporters’ Specialized Foreign Currency Accounts,
– The introduction of equity investment abroad through these accounts,
– Stability in the Pakistani Rupee (PKR), encouraging IT exporters to bring back a higher portion of profits to Pakistan.

Pakistani IT companies have remained proactive in engaging with global clients. Recently, some of the leading companies participated in the Oslo Innovation Week and the Pak-US Tech Investment Conference.

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

A major shift this fiscal year is the SBP’s introduction of a new category for Equity Investment Abroad (EIA), specifically for export-oriented IT companies. Under this new policy, IT exporters can now invest up to 50% of their export proceeds from specialized foreign currency accounts in foreign entities. This development is expected to further bolster the confidence of IT exporters and encourage the repatriation of proceeds to Pakistan.

Net IT exports (exports minus imports) for January 2025 stood at US$ 281 million, showing a 17% increase YoY and 27% growth compared to the previous month. These numbers are also higher than the 12-month average of US$ 261 million.

Comment by Riaz Haq on April 19, 2025 at 8:50pm

Pakistan’s IT exports hit record $342mn in March 2025 - Profit by Pakistan Today


https://profit.pakistantoday.com.pk/2025/04/17/pakistans-it-exports...

KARACHI: Pakistan’s technology sector continues to build momentum, as the country posted its highest-ever monthly IT export proceeds in March 2025, clocking in at US$342 million. This reflects a 12% year-on-year and month-on-month increase, underlining both rising global demand and supportive domestic policy measures. The figure is also well above the 12-month trailing average of US$311 million.


The latest number brings total IT exports in the first nine months of FY2025 (9MFY25) to US$2.8 billion, up 24% year-on-year, positioning the sector firmly on track to surpass last year’s full-year performance.

Pakistan has now recorded 18 consecutive months of year-on-year IT export growth—a trend that began in October 2023. Industry observers attribute this resilience to a combination of strategic factors, including regulatory reforms, currency stability, and an expanding international footprint.

A key factor has been the State Bank of Pakistan’s (SBP) relaxation in the permissible foreign currency retention limit, which now allows IT exporters to retain up to 50% of their export proceeds in Specialised Foreign Currency Accounts—up from 35% previously. This flexibility enables companies to reinvest profits more easily and manage foreign operations efficiently.

In a further boost, SBP has introduced a dedicated category titled Equity Investment Abroad (EIA). Under this regime, export-oriented IT firms can acquire shareholding in overseas ventures using their foreign currency accounts. This is seen as a step towards helping Pakistani tech companies scale up internationally and forge strategic partnerships, particularly in Gulf countries and beyond.

Additionally, a stable exchange rate has encouraged exporters to repatriate a larger share of earnings—a critical factor in the sustained increase in monthly inflows.

Looking further ahead, the government’s ‘Uraan Pakistan’ economic plan aims to elevate annual IT exports to US$10 billion by FY2029, which would require a compound annual growth rate (CAGR) of approximately 28% over the next four years. While ambitious, recent trends suggest that the sector is well-positioned to pursue this target—provided policy continuity and investor confidence are maintained.

Analysts at Topline Research maintain a bullish stance on the sector, citing Systems Limited (SYS) as their top pick. The firm is currently trading at 13.4x and 10.1x forward price-to-earnings multiples for 2025 and 2026, respectively, indicating room for upside as Pakistan’s digital economy matures.

Comment by Riaz Haq on July 28, 2025 at 9:14pm

Husain Haqqani
@husainhaqqani
A decade ago, IT exports accounted for barely 2–3 percent of Pakistan’s goods and services exports; today, they are close to 10 percent.

https://x.com/husainhaqqani/status/1949844564849607043

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https://www.brecorder.com/news/40374855
Pakistan’s IT and ICT exports touched a historic high in FY25, clocking in at $3.8 billion. That’s an 18 percent jump over last year, though shy of the government’s $4 billion target and slower than the 24 percent growth seen in FY24.

June alone brought in $338 million, up 14 percent year-on-year and 3 percent month-on-month, taking monthly exports above the 12-month average of $314 million. Net IT exports (after imports) also reached $306 million for the month, up 20 percent year-on-year.

The story remains anchored in computer services, which pulled in $3.24 billion, up from $2.65 billion last year, while telecom exports stalled at $554 million. Information services, though small, more than doubled to $21 million, hinting at a slow but growing diversification within the export basket.

Yet, even with the record-breaking performance, the missed target underscores persistent structural bottlenecks. Pakistan’s IT sector still grapples with talent shortages, rising wage pressures, and patchy connectivity, while global tech spending slowed as firms cut back on budgets.

Tax and payment reforms have also lagged, limiting exporters’ ability to fully ride global demand. The slower growth rate in FY25 compared to FY24 can also be attributed to a base effect since FY24 had already seen an unusually high jump of 24 percent year-on year.

Policy support has, however, cushioned the sector. The State Bank allowed exporters to retain 50 percent of their foreign earnings (up from 35 percent) and even invest abroad, encouraging them to repatriate a larger share of profits.

Pakistani IT firms have also been busy expanding their global footprint, tapping into the GCC market, and highlighting at international events like London Tech Week 2025 and the Pak-US Tech Investment Conference.

A decade ago, IT exports accounted for barely 2–3 percent of Pakistan’s goods and services exports; today, they are close to 10 percent.

The government’s ambition is to hit $10 billion by FY29 under the “Uraan Pakistan” plan, which implies an annual growth rate of 27 percent. Whether that materializes will depend on how fast Pakistan can fix infrastructure gaps, build a skilled talent pipeline, and simplify its regulatory framework.

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