Pakistan’s IT exports have experienced remarkable growth, reaching $3.2 billion in fiscal year 2024 (FY24), a 24% year-on-year increase, showcasing the sector’s resilience and potential. In August 2024, ICT exports surged to $298 million, reflecting a 27% increase year-on-year and a 4% rise month-on-month, surpassing the 12-month average of $275 million, despite challenges like internet disruptions and hurdles faced by freelancers. Key factors contributing to this growth include the expanding global clientele of Pakistani IT firms, with a shift towards markets in the Middle East, North Africa, and Europe, reducing dependency on North America.
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An increase in the retention limit for foreign currency in exporters’ accounts from 35% to 50% has allowed firms to retain more earnings, boosting overall export figures. A stable Pakistani Rupee (PKR) has encouraged reinvestment in businesses, further driving export revenue. Enhanced participation in global events, such as trade fairs in Saudi Arabia, London, and the U.S., has helped local firms showcase their capabilities, network, and secure contracts, increasing visibility in the international market. Looking ahead, during the first two months of FY25 (2MFY25), ICT exports reached $584 million, a 30% year-on-year growth, solidifying the IT sector’s role as a key economic driver. IT exports now account for 48% of total services exports, up from 35% last year.
Market projections expect growth of 10 to 15% in FY25, with total IT exports potentially reaching between $3.5 billion and $3.7 billion by the fiscal year’s end. This optimistic outlook reflects the adaptability of local IT firms and ongoing investment in technology and innovation. In conclusion, Pakistan’s IT export growth underscores the sector’s resilience and potential, supported by favorable government policies, market diversification, and increased global engagement.
