IT exports surged to all-time high of $3.8 billion in FY25

ISLAMABAD: Pakistan’s exports of IT sector achieved a major milestone in the financial year 2024–25, with exports reaching a record-breaking $3.8 billion.

The latest data of the State Bank of Pakistan (SBP) stated that IT and IT-enabled services (ITeS) exports surged to $3.8 billion, reflecting a $600 million year-on-year increase compared to $3.2 billion in the previous fiscal year.

The yearly jump in IT exports in FY25 is due to the IT export companies growing client base globally, especially in GCC region, relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts, allowance of equity investment abroad through these foreign currency accounts and stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan.

Saad Shah, an IT exporter, said that the increase of IT exports was result of surging penetration in tradition and emerging markets, including USA, UK, Singapore and GCC region. He added the export growth can be maintained further with the consistent policies of the government, the removal of hurdles in the system, and aggressive strategy to explore new and traditional markets with diversification of the products and services.  

Pakistani IT companies are active in engaging with global clients. In the closing financial year, leading IT companies of Pakistan showcased their services and products in global trade fairs, including LEAP, GITEX, Singapore Fintech Festival, London Tech Week 2025 and Pak-US Tech Investment Conference. A major development in FY25 is that SBP has added a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire interest (shareholding) in entities abroad by utilizing up to 50% proceeds from specialized foreign currency accounts. This development will further boost confidence of IT exporters to remit proceeds back to Pakistan.

Ibrahim Amin, chairman Pakistan Freelancers Association (PAFLA), said that the role of freelancers is encouraging to increase exports of IT sector, which is set to increase further in future.

He mentioned that average monthly export of $317 million reported in FY25 should be increased to $417 million average monthly exports to achieve the next target of $5 billion in the current financial year. And, this is also achievable with the consistent growth and empowerment of youth and women in the workforce. He urged that the government should address the tax exemptions and other incentives to IT companies and freelancers to achieve its target of $10 billion by the end of FY29. Out of $3.8 billion exports, freelancers fetched an amount of over half billion in the closing financial year. Dr Noman Said, an IT exporter and CEO S I Global Solutions, said the continuation of politics, a long-term roadmap and a growth vision is indispensable to achieve higher exports target in the next financial year by $5billion.

He said the all stakeholders should build the IT industry string internally to scale up its exports, which can be made possible through capacity building of the professionals and promoting tech education among new workforce.

IT industry should bring diversification in services and explore new and high margin markets to touch $5 billion mark in export by the end of the next financial year-- ambitious but a possible task. Under ‘Uraan Pakistan’ national economic plan government has set a target of $10 billion IT exports by FY29.