Pakistan’s IT exports rise 12pc in March on favourable policies

KARACHI: Pakistan’s IT exports rose 12 per cent year-on-year (YoY) in March 2025, marking the 18th consecutive month of YoY growth since October 2023, according to a report released on Thursday.

Monthly IT exports stood at US$342 million in March 2025, up 12 per cent YoY and month-on-month (MoM). This figure is also higher than the 12-month average of US$311 million, Topline Securities Research said.

Total IT exports for the first nine months of the fiscal year (9MFY25) reached US$2.8 billion, reflecting a 24 per cent increase compared to the same period last year.

Daily export proceeds in March averaged US$18.0 million, compared with US$16.1 million in February, the report added.

Favourable policies and global expansion drive growth

The research cited multiple factors behind the consistent rise in IT exports. These include the global expansion of Pakistani IT firms, particularly in the Gulf Cooperation Council (GCC) region, where businesses have been securing new clients and building a broader presence.

Additionally, policy changes by the State Bank of Pakistan (SBP) have played a crucial role. The central bank increased the retention limit in exporters’ specialised foreign currency accounts from 35 per cent to 50 per cent.

Exporters were also granted permission to make equity investments abroad using these accounts — a move seen as a major incentive for companies looking to scale internationally.

Stability in the Pakistani rupee has also encouraged exporters to repatriate a larger portion of their earnings back to the country, contributing to the rise in export proceeds.

Pakistani IT companies have stepped up their global engagement efforts, with leading firms participating in high-profile events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025.

A recent survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62 per cent of local IT companies now operate specialised foreign currency accounts.

In a further boost for the sector, the SBP has introduced a new regulatory category — Equity Investment Abroad (EIA) — tailored for export-oriented IT companies.

Pakistan posts record monthly current account surplus

Under this policy, IT exporters can now acquire shareholding in overseas entities by using up to 50 per cent of their foreign currency account balances.

Net exports also up

Net IT exports (exports-imports) for March 2025 reached US$311 million, up 13 per cent YoY and 12 per cent MoM. This figure is also higher than the past 12-month average of US$269 million.