ISLAMABAD: Despite recurring internet issues and speed slowdowns as well as firewall issues, Pakistan’s IT exports have reached $324 million in November, marking a 25 per cent year-on-year (YOY) increase, though it was down two per cent month-on-month.
These exports exceeded the 12-month average of $295 million and represent the 14th consecutive month of year-on-year growth, beginning in October 2023. Over the first five months of FY25, IT exports surged by 33 per cent to $1.53 billion, as per Startup Pakistan.
Growing client base
Daily Dawn reported that the year-on-year jump in IT exports is due to IT export companies’ growing client base globally, especially in Gulf Cooperation Council (GCC) region, relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), increasing it from 35pc to 50pc in the Exporters’ Specialized Foreign Currency Accounts, and stability in Pakistan rupee encouraging IT exporters to bring a higher portion of profits back to Pakistan.
However, the MoM drop in IT exports is due to fewer working days in November (21 days) than in October (23 days). Per-day export proceeds were recorded at $15.4m for November versus $14.3m for October, the daily reported.
According to a Pakistan Software Houses Association (P@SHA) survey, 62pc of IT companies maintain specialized foreign currency accounts.
Equity Investment Abroad
A major development in FY25 was State Bank of Pakistan (SBP), adding a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies.
The IT exporters can now acquire interest (shareholding) in entities abroad utilising up to 50pc proceeds from specialized foreign currency accounts. This development will further boost the confidence of IT exporters to remit proceeds back to Pakistan, Dawn reported.
