Industry Overview
Pakistan’s IT sector has emerged as a bright spot in the country’s otherwise sluggish economy, with exports set to reach around $3.7 billion (FY2025) and a predominantly young, tech-savvy population fueling growth.
In the first ten months of fiscal year 2025 (10MFY25), IT exports reached $3.1 billion, marking a robust 21% year-on-year (YoY) increase.
Notably, April 2025 saw monthly IT exports of $317 million, up 2% YoY, though down 7% month-on-month (MoM). This figure remains above the 12-month average of $314 million, reflecting the 19th consecutive month of YoY export growth starting from October 2023.
Export proceeds per day in April stood at $15.9 million compared to $18 million in March, underscoring sustained strong performance. Net IT exports (exports minus imports) for April 2025 were recorded at $288 million, a 2% YoY rise, surpassing the 12-month average of $272 million.
Industry Updates
Several key factors have driven this export growth:
- Pakistani IT companies are actively expanding their global client base, especially in the Gulf Cooperation Council (GCC) region.
- Relaxation by the State Bank of Pakistan (SBP) increased the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%.
- IT exporters can now make equity investments abroad using up to half of their foreign currency proceeds, a new category introduced by SBP known as Equity Investment Abroad (EIA).
This regulatory flexibility encourages exporters to repatriate a higher portion of their profits, fostering reinvestment in the local economy.
Leading Pakistani IT firms have recently showcased their capabilities at major global events like LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025, signaling stronger international engagement.
According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies maintain specialized foreign currency accounts, further indicating confidence in foreign exchange flows.
Growth Potential
Looking ahead, experts predict Pakistan’s IT sector will continue its upward trajectory, expecting 10–15% growth in FY25, reaching $3.5–3.7 billion in exports.
The government’s ambitious ‘Uraan Pakistan’ economic plan targets $10 billion in IT exports by FY29, implying a compound annual growth rate (CAGR) of 28%.
Industry leaders like Systems Limited (SYS) exemplify this potential, with strong market valuations reflecting optimism about the sector’s future.
Challenges
Despite this momentum, structural issues remain:
- Freelancers, who contribute significantly to digital exports (projected to exceed $500 million in FY25), face hurdles such as:
- Limited access to international payment gateways like PayPal
- Unclear taxation
- Lack of tailored banking services
- The regulatory landscape around emerging fintech, including cryptocurrencies and digital assets, is still evolving.
The Pakistan Crypto Council (PCC) is working with the Finance Ministry and State Bank of Pakistan to draft a regulatory framework that supports innovation while ensuring investor protection and financial inclusion.
Road Ahead
Artificial Intelligence (AI) is emerging as a critical catalyst for growth and competitiveness.
At “Karachi Slush’D 2025”, industry voices stressed embedding AI across business operations and empowering youth with AI skills.
The government’s partnership with global tech firms like Huawei, which trains 200,000 students annually, and the fresh $700 million foreign direct investment pledges, reaffirm Pakistan’s commitment to digital transformation.
Prime Minister Shehbaz Sharif emphasized the country’s young demographic, 60% under 30, and its growing digital infrastructure as key assets driving the IT sector’s success.
With continued policy reforms, investment, and skill development, Pakistan’s IT ecosystem is poised to become a cornerstone of inclusive, export-led economic growth.