Pakistan’s IT exports soar to record $310 million

WEB DESK: Pakistan’s Information Technology (IT) sector continues its remarkable growth trajectory, achieving a milestone with $310 million in inflows, setting a record as the highest export figure in a single month, surpassing the previous peak of $306 million in March 2024.

The State Bank of Pakistan (SBP) reports a significant 62 per cent year-on-year increase and a 1 per cent rise from the previous month in export receipts, with April 2024 witnessing IT exports surpassing the last 12-month average of $245 million.

Factors contributing to this growth include the relaxation of retention limits by the SBP and the stability of the Pakistani rupee, encouraging IT exporters to repatriate more profits.

Umair Nizam from the Federation of Chamber of Commerce and Industries (FPCCI) predicts sustained growth in the coming months, driven by support from stakeholders and potential investment inflows through partnerships.

The IT sector achieved a historic high of $2.59 billion in the first 10 months of the fiscal year 2023-24, marking a significant 21 per cent year-on-year increase. Tufail Ahmed Khan, President of the Pakistan Freelancers Association (PAFLA), highlights freelancers’ substantial contribution to export growth through remote work and engagement on freelancing platforms.

According to Express Tribune, Syed Saad Shah, CEO of Hexalyze, underscores the untapped potential of Pakistan’s IT exports, especially in Europe, with increasing demand for services from Pakistani firms.

Shah commends the government’s role in facilitating the sector but believes achieving the FY24 target of $3.5-3.6 billion is unlikely, expecting IT exports to close between $3.1-3.2 billion.

Meanwhile, SBP data reveals a record high of $283 million in net IT exports (exports excluding imports) in April 2024, indicating a notable 68 per cent year-on-year increase.

Overall, Pakistan’s IT sector demonstrates resilience and potential for further growth, driven by favorable policies, stability, and increasing demand for services on the global stage.

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