IT Export Levels
KARACHI: In March 2024, Pakistan’s Information Technology (IT) sector achieved a remarkable milestone, hitting its highest-ever monthly IT exports.
According to Topline security reports, the country’s monthly IT exports soared to US $306 million, marking a significant 37 percent year-on-year (YoY) increase and a 19 percent month-on-month (MoM) rise. This surpasses the previous record set in December 2023, which stood at US $303 million.
Several factors have contributed to this surge in IT exports. The State Bank of Pakistan (SBP) relaxed the permissible retention limit, increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts.
Additionally, the stability of the Pakistani Rupee (PKR) currency has encouraged IT companies to remit their foreign income and deposit it in local accounts.
In the first nine months of fiscal year 2024 (9MFY24), IT exports amounted to US$2.28 billion, marking a substantial 17 percent YoY increase compared to the same period in the previous fiscal year.
Furthermore, net IT exports (Exports-Imports) also experienced growth in March 2024, rising by 37 percent YoY and 20 percent MoM to reach US $275 million.
These figures exceeded the 12-month average of US$208 million. In 9MFY24, net IT exports recorded a 16 percent YoY growth, reaching US $1.99 billion.
The newly appointed Finance Minister, Muhammad Aurangzeb, expressed optimism in a recent interview with a private TV channel, projecting that IT exports could reach US $3.5 billion by the year’s end.
However, Topline Securities highlighted that while there has been notable growth in gross IT exports during 9MFY24, achieving the government’s target appears challenging.
Experts anticipate that gross IT exports for FY24 are likely to hover around US $3.0 billion, compared to the US $2.6 billion recorded last year. This indicates a positive trajectory for Pakistan’s IT sector, driven by various supportive factors and conducive policies.
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