IT Exports Up 18% in June 2025
ISLAMABAD: Pakistan recorded monthly IT exports of US$338mn in Jun-2025, up by 14% YoY and by 3% MoM. These monthly IT exports in Jun-2025 are higher than last 12-month average of US$314mn. IT Exports have returned to growth after declining in May-2025.
Export proceeds per day were recorded at US$17.8mn for Jun-25 vs. US$16.5mn in May-25.
This takes FY25 IT exports to US$3.8bn, up by 18% YoY compared to FY24 growth of 24% and 10-Year CAGR of 17%.
YoY jump in IT exports in FY25 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 London Tech Week 2025 and Pak-US Tech Investment Conference.
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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$306mn which is an increase of 20% YoY and of 4% MoM. These net IT exports numbers in Jun-2025 are higher than last 12-month average of US$272mn.
According to channel checks from IT industry, exports are expected to grow by 10-15% in FY26. Under ‘Uraan Pakistan’ national economic plan government has set a target of US$10bn IT exports by FY29. This implies a target CAGR of 27% till FY29.
Within the IT sector, Systems Limited (SYS) is our preferred pick. SYS is currently trading at 2025F and 2026F PE of 16.5x and 12.3x, respectively.
