Pakistan’s IT Exports Reach Record High, Surpassing $366 Million in September

Karachi: Pakistan’s information technology sector has achieved a significant milestone, recording its highest-ever monthly exports of $366 million in September 2025. This marks a 25% increase compared to the same period last year and a 9% rise from the previous month, according to data released by JS Global.

The surge in September’s exports has propelled the total IT exports for the first quarter of FY26 to $1.06 billion, reflecting a 21% year-on-year growth. The daily export proceeds in September were calculated at $16.64 million, an improvement from August’s $14.65 million.

The notable year-on-year growth in IT exports is attributed to several factors. Pakistani IT export companies have been expanding their client base globally, particularly in the Gulf Cooperation Council (GCC) region. Additionally, the State Bank of Pakistan’s decision to relax the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% has incentivized exporters. The allowance for equity investment abroad through these accounts and the relative stability of the Pakistani rupee have further encouraged IT exporters to repatriate a higher portion of their profits.

A survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies maintain specialized foreign currency accounts. The State Bank of Pakistan’s introduction of the Equity Investment Abroad (EIA) program, allowing IT exporters to acquire interests in overseas entities using up to 50% of proceeds from these accounts, is expected to bolster exporter confidence.

Net IT exports, calculated by subtracting imports from exports, reached $330 million in September, showing a 29% year-on-year increase and an 8% rise from the previous month. This figure surpasses the last 12-month average of $286 million.

The government has set an ambitious target of $5 billion in IT exports for FY26, with expectations of 18-20% growth throughout the year. Under the national economic initiative “Uraan Pakistan,” the government aims for IT exports to reach $10 billion by FY29, which translates to a compound annual growth rate of 27%.

Within the IT sector, Systems Limited (SYS) has emerged as a preferred choice, currently trading at a 2025 estimated and 2026 forecasted price-to-earnings ratio of 21.6x and 16.1x, respectively.