Pakistan’s IT exports surge to $338 million in June, FY25 sees 18 percent growth

By Staff Reporter

KARACHI: Pakistan’s IT exports jumped 14% year-over-year to $338 million in June 2025, capping off a fiscal year that saw an 18% increase in exports to $3.8 billion, driven by expanded global client bases, regulatory relaxations, and currency stability.

The June exports marked a 3% increase from May, reversing a decline seen in the previous month.

Data from the State Bank of Pakistan shows that daily export proceeds averaged $17.8 million in June, up from $16.5 million in May. The $338 million figure also surpassed the trailing 12-month average of $314 million, signaling a robust recovery in the sector.

For the full fiscal year 2025, which ended in June, IT exports grew by 18% to $3.8 billion, compared to a 24% rise in FY24. The 10-year compound annual growth rate for IT exports stands at 17%, reflecting the sector’s steady expansion over the past decade.

The growth is driven by several factors, including the expansion of client bases in the Gulf Cooperation Council (GCC) region and regulatory changes by the State Bank of Pakistan (SBP). Pakistani IT companies have been actively engaging with global clients, participating in events such as London Tech Week 2025 and the Pak-US Tech Investment Conference to bolster their international presence.

Additionally, the stability of the rupee has encouraged IT exporters to repatriate a larger share of their profits. A survey by the Pakistan Software Houses Association (P@SHA) found that 62% of IT companies are maintaining specialized foreign currency accounts, taking advantage of the SBP’s relaxation of retention limits from 35% to 50%.

A significant development in FY25 was the introduction of the Equity Investment Abroad (EIA) category by the SBP, allowing export-oriented IT companies to invest up to 50% of their specialized foreign currency account proceeds in foreign entities. This move is expected to further incentivize IT exporters to bring their earnings back to Pakistan, strengthening the sector’s financial ecosystem.

Net IT exports, which subtract imports from exports, reached $306 million in June, a 20% increase year-over-year and a 4% rise from May. This figure is above the 12-month average of $272 million, underscoring the sector’s resilience and growing contribution to the economy.

Brokerage Topline Securities said exports are expected to grow by 10-15% in FY26. Under the ‘Uraan Pakistan’ national economic plan, the government aims to achieve $10 billion in IT exports by FY29, implying a target compound annual growth rate of 27% over the next four years. If realized, this ambitious goal would cement Pakistan’s position as a rising player in the global IT market, it added.