FY25 IT exports reach $3.8bn, June posts record $338m

• FY25 IT exports grow 18% year-on-year.
• Net exports exceed $300m after import adjustment.
• Tech sector aims for $10bn exports by FY29.

KARACHI: Information technology (IT) sector posted a new monthly record in June 2025, with exports rising to $338 million — up 14% year-on-year (YoY) and 3.0% month-on-month (MoM), according to official data released on Friday, The News reported.

The June figure surpassed the 12-month rolling average of $314 million, reflecting a strong rebound after a slowdown in May. Average daily export receipts during the month reached $17.8 million, compared to $16.5 million in the previous month.

Cumulatively, IT exports for the fiscal year 2025 (FY25) reached $3.8 billion, representing an 18% increase from FY24. While this annual growth rate is slightly below the 24% rise recorded in the previous fiscal year, it still outpaces the 10-year compound annual growth rate (CAGR) of 17%, indicating sustained momentum in the sector.

Sania Irfan, a technology sector analyst at Topline Research, said the rise in FY25 IT exports has been attributed to multiple key factors. These include a global expansion of client portfolios by Pakistani IT firms, particularly in the Gulf Cooperation Council (GCC) region, and crucial regulatory relaxations by the State Bank of Pakistan (SBP). 

Among these measures is the increase in the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50%. The SBP, she added, has also allowed exporters to make equity investments abroad using these accounts, a move expected to incentivise the repatriation of higher profits.

A noteworthy initiative by the SBP during FY25 was the introduction of a new category, Equity Investment Abroad (EIA), specifically targeting export-oriented IT companies. This enables them to acquire shareholding in foreign entities using up to 50% of their foreign currency earnings.

According to a recent survey conducted by the Pakistan Software Houses Association (P@SHA), 62% of IT firms are already maintaining these specialised accounts, indicating a strong base for leveraging the new investment window.

Pakistan’s IT firms have been active in showcasing their capabilities internationally. Several leading companies recently participated in London Tech Week 2025 and the Pak-US Tech Investment Conference, helping them expand their global reach.

Net IT exports (exports minus imports) in June 2025 stood at $306 million, reflecting a 20% YoY and a 4.0% MoM increase. This figure also exceeds the 12-month average of US$272 million, demonstrating growing export strength even after adjusting for sectoral imports.

Industry sources suggest that IT exports are expected to grow by 10-15% in FY26. The government, under its national economic development plan ‘Uraan Pakistan’, has set an ambitious target of $10 billion in IT exports by FY29, requiring a CAGR of 27% over the next four years.