Surpassing the 12-month average of $299 million
Pakistan achieved a historic milestone in December 2024, recording the highest-ever monthly IT exports at $348 million. This significant achievement reflects a 15% year-on-year (YoY) increase and a 12% month-on-month growth, surpassing the 12-month average of $299 million. This remarkable feat marks the 15th consecutive month of YoY growth in IT exports, a testament to the sector’s resilience and consistent progress since October 2023.
US, China and UK top 3 destinations of Pakistani exports during Jul-Nov 2024
Pakistan IT Exports
The robust performance of the IT sector can be attributed to several key factors. The expansion of Pakistani IT companies’ client base, particularly within the lucrative GCC region, has played a crucial role. Furthermore, the State Bank of Pakistan’s (SBP) relaxation of the permissible retention limit for exporters in specialized foreign currency accounts from 35% to 50% has significantly boosted confidence and encouraged greater repatriation of earnings. The introduction of the Equity Investment Abroad (EIA) category for IT exporters, enabling them to invest in foreign entities using a portion of their export earnings, has further incentivized foreign exchange inflows.
Pak-US Tech Investment Conference
The continuous growth of IT exports has been driven by the dedication and hard work of both dedicated IT firms and a thriving community of freelancers. Pakistani companies have actively engaged in global events such as the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference, effectively showcasing their capabilities and expanding their global reach.
Internet Connectivity
Despite this impressive growth, the IT sector continues to face significant challenges, primarily stemming from widespread issues related to interrupted and slow internet connectivity. These connectivity issues pose a significant obstacle to the sector’s full potential, leading to substantial revenue losses.
Experts predict that IT exports could reach between $3.6 billion and $4 billion by the end of the current fiscal year. However, with continued efforts to address connectivity issues and capitalize on emerging opportunities in new markets, Pakistan has the potential to surpass these projections and achieve even greater success in the global IT landscape.
PM for further improving IT infrastructure to boost exports by upto $25 bn in 5 years
The sustained growth of the IT sector is crucial for the overall health of the Pakistani economy, particularly in stabilizing the country’s current account. By addressing the challenges and leveraging the strengths of this vital sector, Pakistan can unlock its full potential and become a major player in the global digital economy.
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- US, China and UK top 3 destinations of Pakistani exports during Jul-Nov 2024