FY25 IT Exports Hit $3.8B; June Sees Record $338M Surge

• IT exports grew 18% year-on-year in FY25.
• Net exports surpassed $300 million after imports were factored in.
• The tech sector targets $10 billion in exports by FY29.

KARACHI: The information technology (IT) sector reached a new monthly export record in June 2025, with figures climbing to $338 million. This marks a 14% year-over-year increase and a 3% month-over-month rise, according to data released on Friday by The News.

The June export figure exceeded the 12-month rolling average of $314 million, indicating a robust recovery following a dip in May. Average daily export earnings during this month were $17.8 million, compared to $16.5 million in the prior month.

For the fiscal year 2025 (FY25), IT exports totaled $3.8 billion, representing an 18% increase from FY24. Although this annual growth rate is slightly lower than the 24% surge seen in the previous fiscal year, it still surpasses the 10-year compound annual growth rate (CAGR) of 17%, affirming ongoing sector strength.

Sania Irfan, a technology sector analyst at Topline Research, attributed the growth in FY25 IT exports to several key elements, including the global expansion of client portfolios by Pakistani IT companies—especially in the Gulf Cooperation Council (GCC) area—and important regulatory changes made by the State Bank of Pakistan (SBP).

One notable change is the increase in the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50%. The SBP has also permitted exporters to make equity investments abroad through these accounts, which is expected to encourage the repatriation of larger profits.

A significant initiative introduced by the SBP during FY25 was the establishment of a new category called Equity Investment Abroad (EIA), designed specifically for export-oriented IT firms. This allows them to acquire shares in foreign companies using up to 50% of their foreign currency earnings.

A recent survey by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT firms are already utilizing these specialized accounts, showcasing a strong foundation to utilize the new investment opportunities.

Pakistani IT firms have been proactive in showcasing their expertise on the global stage. Many prominent companies participated in events like London Tech Week 2025 and the Pak-US Tech Investment Conference, helping expand their international footprint.

Net IT exports (exports minus imports) for June 2025 amounted to $306 million, marking a 20% increase year-on-year and a 4% rise month-on-month. This figure also exceeds the 12-month average of $272 million, highlighting an upward trend in exports even after accounting for imports.

Industry insiders suggest that IT exports are projected to grow by 10-15% in FY26. The government’s national economic development plan, ‘Uraan Pakistan’, aims for an ambitious target of $10 billion in IT exports by FY29, requiring a CAGR of 27% over the next four years.