Topline Pakistan Research has analyzed the export performance of the IT sector in Pakistan, reporting that IT exports reached a record high of US$354 million in July 2025. This represents a 24% increase year-over-year (YoY) and a 5% increase month-over-month (MoM). The monthly IT exports for July 2025 exceeded the 12-month average of US$317 million.
– Export proceeds per day in July 2025 were recorded at US$15.4 million, compared to US$17.8 million in June 2025. Within total IT exports, computer services grew by 10% MoM to US$311 million in July 2025, largely driven by an increase in software consultancy exports, which rose from US$96 million in June 2025 to US$104 million.
The year-over-year growth in IT exports for this month can be attributed to several factors:
1. IT export companies expanding their client base globally, especially in the Gulf Cooperation Council (GCC) region.
2. A relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), increasing it from 35% to 50% in Exporters’ Specialized Foreign Currency Accounts.
3. The allowance of equity investment abroad through these foreign currency accounts.
4. Stability in the Pakistani Rupee (PKR), which has encouraged IT exporters to remit a larger portion of their profits back to Pakistan.
According to a survey conducted by the Pakistan Software Houses Association (P@SHA), 62% of IT companies maintain specialized foreign currency accounts.
We believe that the SBP’s introduction of Equity Investment Abroad (EIA) will further boost the confidence of IT exporters by allowing them to invest up to 50% of their proceeds from specialized foreign currency accounts in foreign entities.
Net IT exports, calculated as Exports minus Imports, amounted to US$317 million in July 2025, reflecting a 26% increase YoY and a 4% increase MoM. These net export figures are also higher than the last 12-month average of US$272 million.
While the government has set a target of US$5 billion for FY26, we anticipate IT exports to grow by 18-20% during the year. Furthermore, under the ‘Uraan Pakistan’ national economic plan, the government has established an FY29 target of US$10 billion in IT exports, which implies a compound annual growth rate (CAGR) of 27% until FY29.
Within the IT sector, Systems Limited (SYS) is our preferred partner, currently trading at a price-to-earnings (PE) ratio of 19.0x for 2025 and 14.2x for 2026.
