• Pakistan recorded IT exports of USD 3.2bn, marking a 24% YoY increase during FY24.
• On an annual basis, IT exports represent the highest ever IT export total, surpassing the previous record of USD 2.6bn set in FY22.
• IT exports accounted for 8.3% of Pakistan’s total exports in FY24, up from 4.3% in FY18, demonstrating the sector’s growing contribution to the national current account balance.
• As a percentage of total services exports, IT exports contributed 41%, marking the highest contribution among all sectors.
• This makes IT the major contributor to the growth in services exports.
Key drivers behind IT export surge
• The rise in IT exports is primarily attributed to greater engagement of Pakistani IT firms in the MENAP region and active participation in Learning Edge Advancement and Progress (LEAP) events in Saudi Arabia (KSA).
• In addition, the State Bank of Pakistan (SBP) has increased the permissible retention limit in exporter Specialized Foreign Currency Accounts from 35% to 50%, boosting IT companies to expand operations.
• The stability of the PKR against the greenback has encouraged IT exporters to repatriate a larger portion of their profits to Pakistan.
• The reported IT export figures reflect the revenue remitted back to Pakistan by technology companies.
Courtesy – AHL Research