Sector sees 15% YoY surge in December 2024, driven by global expansion and regulatory reforms, with $10 billion export target set for FY29.
Pakistan’s IT sector continued its impressive growth trajectory in December 2024, recording its highest-ever monthly exports of $348 million. This marks a 15% year-on-year (YoY) increase and a 12% month-on-month (MoM) gain, surpassing the 12-month average of $299 million. This achievement underscores the consistent momentum in the sector, with December 2024 marking the 15th consecutive month of YoY growth since October 2023. Cumulatively, IT exports in the first half of FY25 (1HFY25) reached $1.86 billion, reflecting a significant 28% YoY increase.
Pakistan Records Highest-Ever Monthly IT Exports at $348 Million
This remarkable growth can be attributed to several factors, including the expansion of Pakistani IT companies’ global client base, particularly in the GCC region. Furthermore, the State Bank of Pakistan (SBP) has implemented crucial regulatory changes, including increasing the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% and introducing the “Equity Investment Abroad (EIA)” category. These measures have significantly boosted exporter confidence and encouraged greater repatriation of earnings.
15th consecutive month of YoY growth driven by expanding global reach and regulatory reforms.
To further enhance global engagement, Pakistani IT companies are actively participating in international forums such as the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference.
While gross exports reached a record high, net IT exports (exports minus imports) for December 2024 stood at $222 million, showing a 16% YoY decline. Despite this, the IT sector is poised for continued growth, with an anticipated annual growth rate of 10-15% for FY25, potentially reaching $3.5-3.7 billion.
Within the sector, Systems Limited (SYS) has emerged as a leading performer, demonstrating strong financial performance and trading at attractive valuations.
PM for further improving IT infrastructure to boost exports by upto $25 bn in 5 years
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