Pakistan’s IT Exports Reach Record High, Driven by Global Expansion and Policy Changes

Karachi: Pakistan’s IT sector marked a historic achievement in October 2025 with exports reaching an unprecedented monthly total of $386 million, representing a 17% increase compared to the same period last year and a 5% rise from the previous month. This figure surpasses the 12-month average of $332 million and marks the fifth consecutive month of year-on-year growth since June 2025.

The cumulative IT exports for the first four months of the fiscal year 2026 have reached $1.4 billion, marking a 20% increase from the previous year. Daily export proceeds in October were recorded at $16.78 million, slightly up from September’s $16.64 million.

Several factors contributed to this growth. Pakistani IT companies have expanded their client base globally, with a significant focus on the Gulf Cooperation Council (GCC) region. The State Bank of Pakistan’s decision to relax the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts, increasing it from 35% to 50%, has also played a crucial role. Additionally, the introduction of the Equity Investment Abroad (EIA) policy, which allows IT exporters to use up to 50% of proceeds in specialized foreign currency accounts for equity investment abroad, has bolstered exporters’ confidence.

A survey by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies are utilizing specialized foreign currency accounts, reflecting a trend towards maintaining foreign earnings within the country.

Net IT exports, which are calculated by subtracting imports from exports, reached $335 million in October, showing a 12% year-on-year increase and a 2% month-on-month rise. This figure also exceeds the 12-month average of $292 million.

The government has set an ambitious target of $5 billion in IT exports for fiscal year 2026. Current projections suggest that exports could grow by 18-20% this year, reaching $4.5 billion compared to $3.8 billion in fiscal year 2025. Under the “Uraan Pakistan” national economic plan, the government aims for IT exports to hit $10 billion by fiscal year 2029, which would require a compound annual growth rate of 27%.

Within the IT sector, Systems Limited (SYS) is highlighted as a preferred choice, currently trading at a price-to-earnings ratio of 19.1x for 2025 and an estimated 13.2x for 2026.