Despite facing frequent internet disruptions and slow connectivity, Pakistan’s IT sector has achieved its highest-ever monthly exports. In December 2024, IT exports reached a record $348 million, marking a 15% year-on-year (YoY) increase and a 12% rise month-on-month. This figure also surpassed the 12-month average of $299 million and represents the 15th consecutive month of YoY growth, starting from October 2023.
The cumulative IT exports for the first half of FY2024-25 (1HFY25) totaled $1.86 billion, a 28% YoY increase. According to Nasheed Malik from Topline Research, this growth is driven by the global expansion of Pakistani IT companies, especially in the GCC region, along with key measures like the State Bank of Pakistan’s (SBP) increase in the permissible retention limit from 35% to 50% in exporters’ foreign currency accounts and new equity investment opportunities abroad.
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Pakistani IT firms have successfully connected with international clients through global events such as the Oslo Innovation Week and the Pak-US Tech Investment Conference. The State Bank’s introduction of the Equity Investment Abroad (EIA) category in FY25 has further encouraged IT exporters by allowing them to invest up to 50% of their foreign earnings into foreign ventures, boosting their confidence in repatriating funds to Pakistan.
Despite these impressive gains, experts caution that IT exports are still far below their potential, with connectivity issues costing millions in lost revenue. Senior analyst Muhammad Yasir forecasts that IT exports could reach $3.6 to $4 billion by the end of FY2024-25, though he believes this figure could be higher if internet challenges were resolved.
Yasir emphasized the importance of addressing these connectivity issues to sustain the growth of the IT sector, which plays a crucial role in stabilizing Pakistan’s economy and current account.
