Pakistan’s IT sector has reached a new milestone by achieving record-breaking monthly exports of $348 million in December 2024. This remarkable accomplishment comes despite ongoing challenges such as frequent internet disruptions and low connectivity, showing the resilience and potential of the country’s tech industry.
The December exports represent a 15% increase compared to the same period in the previous year and a 12% rise from November 2024. It also surpassed the average monthly export figure of $299 million over the last year. December marked the 15th consecutive month of growth in IT exports, a trend that began in October 2023.
For the first half of the fiscal year 2024-25 (July to December 2024), the cumulative IT exports reached an impressive $1.86 billion, reflecting a 28% year-on-year growth.
The growth in IT exports can be attributed to several significant factors. Pakistani IT companies have successfully expanded their client base globally, particularly in the GCC region. Events such as the Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference helped establish valuable international connections.
Moreover, policy improvements by the State Bank of Pakistan (SBP) played a crucial role. The permissible retention limit in Exporters’ Specialised Foreign Currency Accounts was raised from 35% to 50%, enabling IT exporters to hold a larger share of their earnings in foreign currency. Additionally, the SBP introduced a category called Equity Investment Abroad (EIA), allowing IT companies to use up to 50% of their foreign currency proceeds to acquire equity stakes in foreign entities. These measures encouraged companies to repatriate profits and reinvest in their operations.
Despite the positive growth, the IT sector faces significant challenges that hinder its full potential. Slow and unreliable internet connectivity remains a major issue, leading to missed opportunities and lost revenue. Experts emphasize that these connectivity issues must be addressed promptly to unlock the sector’s maximum potential.
Industry experts remain optimistic about the future of Pakistan’s IT sector. Muhammad Yasir, a senior IT and telecom analyst, projects that IT exports could reach between $3.6 billion and $4 billion by the end of FY2024-25. He also believes the sector could surpass this figure with continued efforts from companies and freelancers.
Pakistani IT firms have shown incredible commitment, working tirelessly to deliver projects on time for international clients. They are also exploring opportunities in new markets while maintaining strong ties with traditional markets. This proactive approach has significantly contributed to the steady growth in IT exports.
To further accelerate growth, the government must prioritize resolving connectivity issues and providing a reliable internet infrastructure. Enhancing the IT sector will not only stabilize Pakistan’s current account but also strengthen the national economy.
With its talented workforce and supportive policies, Pakistan’s IT sector is well-positioned to achieve even greater heights in the coming years. The record-breaking performance in December 2024 is a testament to the immense potential of the country’s tech industry.
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