IT Exports in Apr-25 up by 2% YoY to record US$317mn

ISLAMABAD: Pakistan recorded monthly IT exports of US$317mn in Apr-2025, up by 2% YoY while down by 7% MoM.

These monthly IT exports in Apr-2025 are higher than last 12-month average of US$314mn. This is the 19th consecutive month of YoY IT export growth, starting from October 2023.

Export proceeds per day were recorded at US$15.9mn for Apr-25 vs. US$18.0mn in Mar-25.

This takes 10MFY25 IT exports to US$3.1bn, up by 21% YoY.

YoY jump in IT exports is due to  (1) IT export companies growing client base globally, especially in GCC region, (2) relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35% to 50% in the Exporters’ Specialized Foreign Currency Accounts, (3) allowance of equity investment abroad through these foreign currency accounts and (4) stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan.

Pakistani IT companies are active in engaging with global clients. Recently leading IT companies of Pakistan attended LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025.digital future

According to a Pakistan Software Houses Association (P@SHA) survey, 62% of IT companies are maintaining specialized foreign currency accounts.

A major development in FY25 is that SBP has added a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire interest (shareholding) in entities abroad by utilizing up to 50% proceeds from specialized foreign currency accounts. This development will further boost confidence of IT exporters to remit proceeds back to Pakistan.

Net IT Exports (Exports-Imports) displayed monthly number of US$288mn which is an increase of 2% YoY while down by 7% MoM. These net IT exports numbers in Apr-2025 are higher than last 12-month average of US$272mn.

We believe, IT sector will continue its growth trajectory and momentum with likely growth of 10-15% for FY25 to US$3.5-3.7bn. Under ‘Uraan Pakistan’ national economic plan government has set a target of US$10bn IT exports by FY29. This implies a target CAGR of 28% till FY29.

Within the IT sector, Systems Limited (SYS) is our preferred pick. SYS is currently trading at 2025F and 2026F PE of 14.6x and 11.0x, respectively.