KARACHI: Despite challenges such as internet disruptions and firewalls, Pakistan achieved its highest-ever monthly IT exports of $348 million in December 2024, an increase of 15 per cent year-on-year (YoY) and 12pc month-on-month (MoM).
These exports in December 2024 surpassed the 12-month average of $299m.
This marks the 15th consecutive month of YoY IT export growth, starting from October 2023. For the first half of FY25, IT exports reached $1.86 billion, reflecting a 28pc YoY increase, according to Nasheed Malik of Top Line Securities.
Export proceeds per day in December 2024 were recorded at $16.6m, up from $14.8m in November 2024.
Explaining the YoY growth in IT exports, Mr Malik attributed the increase to the expanding client base of Pakistani companies, particularly in the GCC region. He also highlighted the relaxation of the permissible retention limit by the State Bank of Pakistan, which was increased from 35pc to 50pc in the exporters’ specialised foreign currency accounts.
Additionally, the allowance of equity investment abroad through these accounts, along with stability in the Pakistani rupee, encouraged IT exporters to bring a larger portion of profits back to Pakistan.
Record $348m proceeds in Dec surpass 12-month average of $299m
Mr Malik noted that Pakistani IT companies are actively engaging with global clients, with leading firms recently participating in events such as Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference.
A survey by the Pakistan Software Houses Association (P@SHA) found that 62pc of IT companies are maintaining specialised foreign currency accounts.
Mr Malik also pointed to a key development in FY25, with the SBP introducing a new category of Equity Investment Abroad (EIA) specifically for export-oriented IT companies.
IT exporters can now acquire shareholding in foreign entities using up to 50pc of proceeds from these specialised foreign currency accounts. The move is expected to further boost the confidence of IT exporters in remitting proceeds back to Pakistan.
Mr Malik believed that the IT sector will continue its growth trajectory, with an expected growth rate of 10-15pc in FY25, bringing exports to $3.5-3.7bn.
Under the ‘Uraan Pakistan’ national economic plan, the government has set a target of $10bn in IT exports by FY29.
Published in Dawn, January 18th, 2025
