Pakistan recorded monthly IT exports of US$ 342 million in March 2025, up 12% year-over-year (Yoy) and 12% month-over-month (Mom). These monthly IT exports in March 2025 are higher than the last 12-month average of US$ 311 million. This marks the 18th consecutive month of year-over-year (Yoy) IT export growth, beginning in October 2023. This takes 9mfy25 IT exports to US$2.8 billion, up 24% year-over-year.
§ Export proceeds per day were recorded at US$18.0mn for Mar-25 vs. US$16.1mn in Feb-25.
§ YoY jump in IT exports is due to (1) IT export companies growing client base globally, especially in GCC region, (2) relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts, (3) allowance of equity investment abroad through these foreign currency accounts and (4) stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan.
Pakistani IT companies are actively engaging with global clients. Recently leading IT companies of Pakistan attended LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025.
§ According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies are maintaining specialized foreign currency accounts.
§ A major development in FY25 is that SBP has added a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire an interest (shareholding) in entities abroad by utilising up to 50% of the proceeds from specialised foreign currency accounts. This development will further boost confidence of IT exporters to remit proceeds back to Pakistan.
§ Net IT Exports (Exports-Imports) displayed a monthly number of US$ 311 million, which is an increase of 13% Yoy, while also up by 12% Mom. These net IT exports numbers in March 2025 are higher than the last 12-month average of US$ 269 million.
We believe the IT sector will continue its growth trajectory and momentum, with a likely growth of 10-15% for FY25 to US$3.5-3.7 billion. Under ‘Uraan Pakistan’ national economic plan government has set a target of US$10bn IT exports by FY29. This implies a target CAGR of 28% till FY29.
§ Within the IT sector, Systems Limited (SYS) is our preferred pick. SYS is currently trading at a 2025f and 2026f PE of 13.4x and 10.1x, respectively.
Courtesy – Topline Pakistan Research
