IT exports have been steadily rising, with FY24 total exports reaching $3.2 billion, a 24 percent year-on-year increase. In August 2024, Pakistan’s ICT exports, which include telecommunications and IT services, surged to $298 million, marking a 27 percent year-on-year increase and a 4 percent month-on-month rise. This growth exceeded the 12-month average of $275 million, highlighting the country’s expanding IT sector despite ongoing challenges such as internet disruptions and issues faced by the freelancer community.
The key factors driving this growth include the expanding global clientele. Local IT firms continue to focus on North America but have also shifted toward the Middle East, North Africa, and parts of Europe. Another major factor supporting this sector’s exports is the increase in the retention limit for foreign currency in exporters’ accounts from 35 percent to 50 percent in FY24. Additionally, a relatively stable PKR has encouraged exporters to bring back a larger portion of their earnings, leading to increased export revenue. Recent boosts to exports have also come from the heightened engagement of Pakistani companies in global events, especially in Saudi Arabia, London, and the U.S.
Overall, during the first two months of FY25 (2MFY25), ICT exports exceeded half a billion dollars ($584 million), representing a substantial 30 percent year-on-year growth. As a percentage of Pakistan’s total services exports, IT exports now account for 48 percent, up from 35 percent in the same period last year. The market is projecting IT sector growth of 10-15 percent in FY25, with total exports expected to reach $3.5-3.7 billion.
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