ISLAMABAD – Pakistan’s technology exports surged to an all-time high of $386 million in October, officials said on Monday, driven by regulatory reforms and growing global clientele, putting the sector on track to become a major source of foreign exchange.
The October data, released by the central bank, marks a 17% increase from the same month last year and the fifth consecutive month of year-on-year growth. For the first four months of the fiscal year (July-October), IT exports have reached $1.4 billion, up 20% from the same period last year.
Analysts attributed the robust performance to several key factors, including a recent decision by the State Bank of Pakistan (SBP) to allow exporters to retain 50% of their earnings in foreign currency accounts, up from 35% previously. The central bank also now permits using these funds for equity investments abroad.
“These measures have significantly boosted the confidence of IT exporters, encouraging them to remit a higher portion of their profits back to Pakistan,” said Sania Irfan, an analyst at Topline Research.
Stability in the Pakistani rupee and a strategic push to secure clients in the Gulf Cooperation Council (GCC) region have also contributed to the growth, Irfan added.
A survey by the Pakistan Software Houses Association (P@SHA) found that 62% of IT companies are now utilising these specialised foreign currency accounts, underscoring the popularity of the new policies.
The government has set an ambitious target of $5 billion in IT exports for the current fiscal year, which ends in June 2026. While analysts at Topline Research project a slightly lower figure of $4.5 billion, it would still represent a significant 18-20% annual growth from the $3.8 billion recorded in the previous year.
The long-term vision is even more expansive. Under the ‘Uraan Pakistan’ national economic plan, the government aims to achieve $10 billion in annual IT exports by 2029.
The sector’s strong performance offers a bright spot for Pakistan’s economy, which has been navigating challenges including high inflation. Net IT exports, which account for exports minus imports, stood at $335 million in October, also well above the 12-month average.