Karachi: Pakistan’s technology sector continued its upward trajectory in March 2025, setting a new benchmark with IT exports reaching $342 million—the highest monthly total in the country’s history, according to figures released by the State Bank of Pakistan (SBP).
The March numbers reflect a 12% increase both year-on-year and month-on-month, and surpass the 12-month trailing average of $311 million, signaling sustained global demand and effective policy support at home.
This latest surge extends Pakistan’s IT export growth streak to 18 consecutive months, a trend that began in October 2023. Total exports for the first nine months of FY2025 (July–March) now stand at $2.8 billion, up 24% year-on-year, putting the sector on track to exceed the $3.5–$3.7 billion full-year projection.
Analysts attribute the strong performance to a combination of regulatory reforms, currency stability, and increased international presence of Pakistani tech firms.
A key catalyst has been SBP’s decision to raise the foreign currency retention limit for IT exporters from 35% to 50%, allowing companies to hold earnings in Specialised Foreign Currency Accounts. This change has empowered firms to reinvest in international operations and manage global expansion more efficiently.
Additionally, the introduction of a new Equity Investment Abroad (EIA) category enables IT firms to acquire stakes in foreign ventures using retained earnings, further boosting competitiveness in markets across the Gulf region and beyond.
According to a survey by the Pakistan Software Houses Association (P@SHA), 62% of local IT firms are now actively using these specialised accounts—a sign of the sector’s growing financial maturity.
Net IT exports (after deducting sector imports) rose to $311 million in March, up 13% YoY and 12% MoM, indicating better profitability and reduced reliance on imported software and services.
With the government targeting $10 billion in annual IT exports by FY2029 under its ‘Uraan Pakistan’ economic initiative, analysts say the sector would need to maintain a 28% CAGR over the next four years—a challenge, but not an impossibility given current momentum. Brokerage firm Topline Research remains optimistic, identifying Systems Limited (SYS) as a top sector pick. The company is currently trading at 13.4x and 10.1x forward P/E multiples for 2025 and 2026, respectively, offering potential upside as Pakistan’s digital economy matures.
Samra Zulfiqar, a real estate analyst at Zameen.com, is passionate about finding projects that offer buyers the best returns. Her keen insights spotlight the market’s most promising opportunities.
