Pakistan’s Information Technology (IT) sector achieved a new monthly record in June 2025, with exports surging to $338 million. This represents a 14% year-on-year (YoY) increase and a 3.0% month-on-month (MoM) rise, according to official data released on Friday, as reported by The News.
The June figure surpassed the 12-month rolling average of $314 million, indicating a robust recovery after a slowdown in May. The average daily export receipts for the month reached $17.8 million, up from $16.5 million in the preceding month.
Cumulatively, IT exports for the fiscal year 2025 (FY25) totaled $3.8 billion, marking an 18% increase from FY24. While this annual growth rate is slightly below the 24% rise recorded in the previous fiscal year, it still outpaces the 10-year compound annual growth rate (CAGR) of 17%, signifying sustained momentum within the sector.
Sania Irfan, a technology sector analyst at Topline Research, attributed the surge in FY25 IT exports to several key factors. These include the global expansion of client portfolios by Pakistani IT firms, particularly within the Gulf Cooperation Council (GCC) region, and crucial regulatory relaxations implemented by the State Bank of Pakistan (SBP).
Among these measures, the SBP increased the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50%. Irfan added that the SBP has also permitted exporters to make equity investments abroad using these accounts, a move anticipated to incentivize the repatriation of higher profits.
A notable initiative by the SBP during FY25 was the introduction of a new category, Equity Investment Abroad (EIA), specifically designed for export-oriented IT companies. This allows them to acquire shareholding in foreign entities using up to 50% of their foreign currency earnings.
According to a recent survey conducted by the Pakistan Software Houses Association (P@SHA), 62% of IT firms are already maintaining these specialized accounts, highlighting a strong foundation for leveraging the new investment opportunities.
Pakistani IT firms have been actively showcasing their capabilities internationally. Several leading companies recently participated in London Tech Week 2025 and the Pak-US Tech Investment Conference, contributing to their expanded global reach.
Net IT exports (exports minus imports) in June 2025 stood at $306 million, reflecting a 20% YoY and a 4.0% MoM increase. This figure also surpasses the 12-month average of $272 million, demonstrating growing export strength even after accounting for sectoral imports.
Industry sources suggest that IT exports are projected to grow by 10-15% in FY26. The government, under its national economic development plan ‘Uraan Pakistan’, has set an ambitious target of $10 billion in IT exports by FY29, which necessitates a CAGR of 27% over the next four years.
