Pakistan IT exports hit record $354m in July 2025

Pakistan’s IT exports climbed 24% year-on-year in July to reach $354 million, the highest-ever monthly figure, with growth driven by software consultancy and policy incentives.

ISLAMABAD: Pakistan’s information technology (IT) exports touched an all-time monthly high of US\$354 million in July 2025, marking a 24% year-on-year increase and a 5% rise compared with June. The figure surpasses the 12-month average of US\$317 million, underscoring growing momentum in the sector as policymakers and exporters eye ambitious long-term targets.

Daily export proceeds averaged US\$15.4 million in July, lower than June’s US\$17.8 million, reflecting fewer working days in the month. Within the overall IT export basket, computer services accounted for US\$311 million, registering a 10% month-on-month increase. Software consultancy led this growth, with exports rising to US\$104 million from US\$96 million a month earlier.

Industry observers attribute the sharp year-on-year expansion to multiple structural and regulatory factors. According to analysts, IT firms have successfully diversified their client base, particularly in the Gulf Cooperation Council (GCC) markets. At the same time, the State Bank of Pakistan’s (SBP) recent policy shifts have provided exporters greater financial flexibility. These include raising the permissible retention limit in specialized foreign currency accounts from 35% to 50%, allowing equity investment abroad through these accounts, and ensuring a relatively stable Pakistani rupee, which has encouraged firms to repatriate a higher share of profits.

Govt Sets $25B IT Exports Targets by 2029

A recent survey by the Pakistan Software Houses Association (P\@SHA) revealed that 62% of IT firms now maintain specialized foreign currency accounts, reflecting growing reliance on these instruments for operational efficiency and overseas expansion. Analysts note that the SBP’s introduction of Equity Investment Abroad (EIA) is a particularly significant measure, as it allows exporters to invest up to half of their proceeds in overseas entities. This policy has boosted confidence among exporters, incentivizing them to channel more foreign income back into Pakistan’s economy.

Net IT exports, defined as exports minus imports, also reached a record US\$317 million in July, representing a 26% year-on-year rise and a 4% month-on-month gain. This figure likewise exceeded the 12-month average of US\$272 million, reinforcing the strength of the sector’s performance.

The government has set a target of US\$5 billion in IT exports for fiscal year 2026, an ambitious goal that would require annual growth of nearly 20%. Analysts forecast an 18–20% increase for the year, broadly in line with the official target. Looking further ahead, under the national economic roadmap “Uraan Pakistan,” policymakers aim to scale IT exports to US\$10 billion by fiscal year 2029. Achieving that goal would require a compound annual growth rate (CAGR) of 27%, a level that analysts caution will demand sustained policy support, global competitiveness, and domestic skill development.

The IT sector has long been viewed as a key driver of Pakistan’s export diversification strategy, offering a hedge against volatility in traditional foreign exchange sources such as textiles and remittances. The latest figures suggest that reforms and global demand are aligning to create fresh momentum. However, challenges remain, including infrastructure bottlenecks, inconsistent tax policies, and global competition from emerging outsourcing destinations.

Among listed firms, Systems Limited (SYS) continues to stand out as an investor favorite. Analysts rate the company as a top pick in the sector, with shares currently trading at forecasted 2025 and 2026 price-to-earnings multiples of 19.0x and 14.2x, respectively. The firm’s diversified service portfolio and overseas market penetration are seen as strong drivers of future growth.

Pakistan’s technology sector is increasingly viewed by policymakers and investors as one of the few sustainable engines of export-led growth. With July’s record performance setting a new benchmark, the coming months will be crucial in determining whether the industry can maintain its trajectory and meet the government’s ambitious targets. As global demand for digital services continues to expand, Pakistan’s exporters are positioning themselves to capture a larger share of the market while leveraging regulatory reforms to strengthen their global footprint.

The record US\$354 million figure achieved in July 2025 underscores both the progress made and the scale of the challenge ahead. Whether Pakistan can sustain its export growth to reach the US\$5 billion target in fiscal year 2026 will depend on a combination of policy consistency, exchange rate stability, and the ability of its IT companies to scale in increasingly competitive global markets.