Pakistan's IT Exports Soar to Record High in April 2024

In April 2024, Pakistan achieved a remarkable milestone by recording its highest-ever monthly IT exports, totaling US$310 million. This achievement represents a substantial 62% increase compared to the previous year and a modest 1% rise from the previous record set in March 2024 at $306 million. The surge in IT exports can be attributed to various factors that have contributed to the growth of the sector.

One key factor driving this growth is the expansion of IT export companies in the GCC region, particularly in Saudi Arabia. Additionally, the decision by the State Bank of Pakistan to raise the permissible retention limit from 35% to 50% in Exporters' Specialized Foreign Currency Accounts has played a significant role in boosting IT exports. Furthermore, the stability of the Pakistani rupee has encouraged IT exporters to repatriate a higher portion of their profits, further fueling the growth of the sector.

During the first 10 months of FY24, Pakistan's IT exports amounted to $2.59 billion, marking a notable 21% increase from the same period in FY23. The net IT exports, calculated as exports minus imports, also reached a record high of $283 million in April 2024, reflecting a substantial 68% year-over-year increase. For the 10-month period of FY24, net IT exports grew by 20% year-over-year to US$2.28 billion.

The decision to increase the retention facility to 50% was implemented by Pakistan's caretaker government, with initial projections suggesting a potential boost of $1.0 billion to IT exports on top of the $2.6 billion recorded in FY23. However, it is anticipated that the target of $3.5-3.6 billion for FY24 may not be met, with IT exports expected to close at around $3.1-3.2 billion.

The surge in Pakistan's IT exports in April 2024 reflects the growing strength of the country's IT sector and its increasing contribution to the economy. With strategic initiatives and supportive policies in place, Pakistan is poised to further enhance its position in the global IT market, driving economic growth and creating new opportunities for the future.