Pakistan’s IT Exports Reach $329 Million in May 2025, Slight Dip Year-on-Year but Growth Remains Strong
June 18, 2025 – Islamabad:
Pakistan’s IT and IT-enabled services (ITeS) exports hit US$ 329 million in May 2025, according to data compiled by Topline Securities. While this marks a slight 1% year-on-year (YoY) dip, it still reflects a 4% increase month-on-month (MoM) and remains above the 12-month average of US$ 314 million.
🔍 Monthly Performance Overview
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May 2025 IT exports: US$ 329 million
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April 2025 IT exports: US$ 316 million
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Average daily export proceeds in May: US$ 16.5 million vs. US$ 15.9 million in April
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Net IT exports (after imports): US$ 294 million — up 1% YoY and 2% MoM
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📈 11-Month Snapshot: IT Sector Keeps Growing
For the first 11 months of FY25 (July–May), Pakistan’s IT exports have totaled around US$ 3.5 billion, representing a strong 19% YoY growth. Despite May’s minor YoY dip—the first in 19 months of consistent growth—industry experts remain optimistic about the sector’s performance.
Factors Supporting Growth:
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Expansion of client base, particularly in GCC markets
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State Bank of Pakistan (SBP) increased retention limit from 35% to 50% for exporters’ specialized foreign currency accounts
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New SBP regulations allow equity investments abroad using up to 50% of export proceeds
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Stability in the Pakistani Rupee (PKR) encouraging more funds to be brought home
🌍 Global Presence & Investor Confidence
Pakistani IT companies are expanding globally, participating in major tech events like LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025. A recent survey by P@SHA (Pakistan Software Houses Association) reveals that 62% of companies are maintaining specialized foreign currency accounts to manage export earnings.
🆕 SBP’s Equity Investment Abroad (EIA) Policy
A game-changing move this year was the SBP’s decision to add a new category—Equity Investment Abroad (EIA). This allows IT exporters to invest up to 50% of their foreign income into overseas ventures, giving companies more flexibility to expand internationally while maintaining strong remittance inflows.
📊 Outlook: US$ 3.8 Billion Expected in FY25
According to industry estimates, Pakistan is expected to close FY25 with IT exports around US$ 3.8 billion, marking a 17% YoY growth. Under the government’s ‘Uraan Pakistan’ economic roadmap, the target is to reach US$ 10 billion in IT exports by FY29, requiring an average 28% compound annual growth rate (CAGR) over the next four years.
Conclusion
Despite a minor year-on-year dip in May, Pakistan’s IT export sector continues to show resilience and upward momentum. With policy reforms, a growing global footprint, and government-backed support, the industry remains a critical pillar in the country’s economic strategy for the future.
