Pakistan's IT Exports Surge to $1.86 Billion, up 21% in H1FY25
- Abeera Marium Siddiqui
- January 21, 2025
- 1:28 pm
- 28
- Business
Pakistan IT exports growth has reached an impressive $1.86 billion during the first half of FY25. This marks a 21% increase compared to $1.456 billion in the same period last year. The IT sector continues to show robust performance despite challenges like slow internet connectivity.
Monthly export figures consistently surpassed $300 million since October 2024. December alone recorded a new high of $348 million in IT export receipts, underscoring the sector’s potential. These numbers reflect the collective efforts of the government, IT companies, and industry representatives.
Government Policies Driving Growth
The State Bank of Pakistan (SBP) introduced significant measures to boost exporter confidence. The retention limit for Exporters’ Specialized Foreign Currency Accounts increased from 35% to 50%. Additionally, the Equity Investment Abroad (EIA) category allows exporters to acquire shares in foreign companies using up to 50% of retained export proceeds. These steps have encouraged companies to repatriate higher earnings, contributing to the sector’s growth.
A stable Pakistani rupee also played a role in incentivizing IT exporters. As a result, many companies brought more profits back into the country, adding to the growing export figures.
Market Diversification: A Key Strategy
Pakistani IT companies actively explored new markets, including the GCC region, while maintaining a stronghold in traditional markets like the United States. This diversification strategy is evident in their participation in major international tech events such as GITEX, Singapore Tech Week, and the Pak-US Tech Investment Conference.
Engagement with international clients during events like Oslo Innovation Week 2024 has led to valuable partnerships. These efforts have opened new doors for the IT sector, contributing significantly to export growth.
Challenges That Remain
The sector faces ongoing challenges, including intermittent internet connectivity and bureaucratic hurdles. Exporters have called for simpler regulatory procedures to streamline market entry for new players. Short-term and long-term credit facilities, especially for SMEs, remain a pressing need.
The Role of Education and Innovation
To sustain this momentum, experts emphasize the importance of aligning IT education with global trends. Fields such as artificial intelligence, cybersecurity, and data analytics are critical for enhancing workforce skills and competitiveness. The introduction of these subjects into the curriculum will prepare the next generation of professionals for evolving industry demands.
Impressive Contribution to the Economy
The IT sector has emerged as the third-largest contributor to Pakistan’s exports, following textiles and rice. It accounts for 46.5% of total service exports, which reached $4 billion in H1 FY25. The government’s national economic plan, Uraan Pakistan, aims to further expand this sector with an ambitious target of $10 billion in IT exports by FY29.
By staying on its current growth trajectory, the IT industry could achieve these ambitious goals, solidifying its role as a key driver of economic progress.
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