Pakistan IT Exports Hit $329M in May-25
Staff Report
ISLAMABAD: Pakistan recorded monthly IT exports of US$329mn in May 2025, down by 1% YoY while up by 4% MoM. These monthly IT exports in May 2025 are higher than the last 12-month average of US$314mn. This is the first YoY decline in IT exports after 19 consecutive months of growth.
Export proceeds per day were recorded at US$16.5mn for May-25 vs. US$15.9mn in Apr-25.
This takes 11MFY25 IT exports to ~US$3.5bn, up by 19% YoY.Pakistan’s IT exports reach $1.2b
YoY jump in IT exports in 11MFY25 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.
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 the confidence of IT exporters to remit proceeds back to Pakistan.
Net IT Exports (Exports-Imports) displayed a monthly number of US$294mn, which is an increase of 1% YoY and of 2% MoM. These net IT exports numbers in May 2025 are higher than the last 12-month average of US$272mn.
According to channel checks from the IT industry, exports are likely to stand at ~US$3.8bn in FY25 (+17% YoY). Under the ‘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 13.8x and 10.4x, respectively.
