Pakistan IT Exports Surge 27% YoY to $298 Million

In August 2024, Pakistan’s IT exports reached $298 million, marking a significant 27% increase year-over-year (YoY) and a 4% rise month-over-month (MoM). According to Topline Pakistan Research, this strong growth exceeded the 12-month average of $275 million, showcasing the sector’s robust expansion. The State Bank of Pakistan (SBP) has supported IT exporters by improving the retention limit for export earnings from 35% to 50%, which has helped stabilize the Pakistani rupee and bolster profits.

Sector Performance and Key Factors

The sector’s performance was further supported by a busy month with 21 working days in August compared to 20 days in July, leading to daily export proceeds of $14.2 million, nearly matching July’s $14.3 million. Pakistan’s IT companies are benefiting from a global client base, including markets like the Gulf Cooperation Council (GCC) and events such as London Tech Week 2024 and Collision Canada 2024. With net IT exports reaching $257 million and surpassing the 12-month average of $241 million, the IT sector is on an upward trajectory, expecting 10-15% growth in FY25.

Telecommunications, Computer, and Information Services Exports

Pakistan’s telecommunications, computer, and information services exports soared to $298 million, marking a notable 26.81% increase YoY and a 4.2% rise MoM from $286 million in July 2024. This surge makes these exports the largest contributor to services exports, accounting for 48.06% of the total. On a cumulative basis, exports have reached $584 million for the first two months of the fiscal year (2MFY25), reflecting a 30.07% increase compared to the same period last year.

Import Trends and SBP Reserves

The State Bank of Pakistan (SBP) reports that import figures also rose, showing a 20.59% increase YoY, while imports surged 32.26% from the previous month. The sector’s growth is bolstered by a $75 million rise in the SBP’s reserves, representing a 36.36% increase YoY, underlining the robust performance and momentum in Pakistan’s IT export sector.