Pakistan’s IT Exports Surge to US$ 298 Million in August 2024, Marking a 27% YoY Growth
Pakistan’s IT export sector continues its upward momentum, with the country recording monthly exports of US$ 298 million in August 2024. This represents a substantial 27% year-on-year (YoY) increase and a 4% month-on-month (MoM) rise. The August 2024 figure also surpasses the 12-month average of US$ 275 million.
According to a report by Topline Securities, the significant YoY growth in IT exports can be attributed to several key factors. Pakistani IT companies have expanded their global client base, particularly in the GCC region. The State Bank of Pakistan (SBP) also played a crucial role by relaxing the permissible retention limit, increasing it from 35% to 50% in Exporters’ Specialized Foreign Currency Accounts. Additionally, the stability of the Pakistani rupee (PKR) has encouraged IT exporters to repatriate a larger share of their earnings back to the country.
On a month-to-month basis, the 4% increase in IT exports is primarily due to a higher number of working days in August (21) compared to July (20). However, daily export proceeds remained steady, with August recording US$ 14.2 million per day compared to US$ 14.3 million per day in July.
Pakistani IT companies have been actively engaging with international clients through global events. Leading firms recently participated in prestigious gatherings such as London Tech Week 2024, Collision Canada 2024, and Black Hat USA.
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A recent survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies are now utilizing specialized foreign currency accounts, which further supports export activities.
An important policy development occurred on July 24, 2024, when the SBP introduced a new category for Equity Investment Abroad (EIA). This allows export-oriented IT companies to acquire shareholding in foreign entities using up to 50% of the proceeds from their specialized foreign currency accounts. This policy is expected to boost the confidence of IT exporters, encouraging them to repatriate more earnings back to Pakistan.
Net IT exports (exports minus imports) for August 2024 stood at US$ 257 million, marking a 26% YoY increase. This figure also exceeds the 12-month average of US$ 241 million.
Topline Securities forecasts that Pakistan’s IT sector will maintain its growth trajectory, with expected growth of 10-15% for the fiscal year 2025 (FY25), potentially bringing total exports to US$ 3.5-3.7 billion.
Related Keywords: Pakistan IT exports, IT export growth, State Bank of Pakistan, foreign currency accounts, Pakistani IT companies, global client base, IT sector growth, GCC region, P@SHA survey, Equity Investment Abroad (EIA).
