ISLAMABAD: Pakistan’s IT sector achieved a new milestone in July 2025, recording all-time-high monthly exports of $354 million, marking a 24 per cent year-on-year (YoY) and 5 per cent month-on-month (MoM) increase, according to official data released today.
The figure surpasses the 12-month average of $317 million, signaling sustained growth momentum in the country’s digital economy.
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The daily average of IT export proceeds, however, dipped slightly to $15.4 million in July, compared to $17.8 million in June. A significant contributor to this growth came from the computer services category, which surged 10 per cent MoM to reach $311 million, largely driven by software consultancy exports that rose to $104 million from $96 million in the previous month.
KEY DRIVERS OF GROWTH
A report by Topline Research outlined that the robust YoY growth is attributed to the following developments:
- Expansion of client bases globally, particularly in the Gulf Cooperation Council (GCC) region;
- Policy incentives by the State Bank of Pakistan (SBP), including an increase in the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35 per cent to 50 per cent;
- Allowance for equity investment abroad, empowering IT firms to reinvest earnings in foreign markets; and
- Relative stability in the Pakistani Rupee (PKR), encouraging exporters to repatriate a larger share of earnings.
A survey by the Pakistan Software Houses Association (P@SHA) revealed that 62 per cent of IT companies are now operating specialised foreign currency accounts, which is expected to further streamline earnings and reinvestment processes.
OUTLOOK AND TARGETS
Net IT exports (exports minus imports) for July 2025 stood at $317 million, showing a 26 per cent YoY and 4 per cent MoM growth, which is also above the 12-month average of $272 million.
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With a $5 billion target for FY26, analysts project 18-20 per cent growth in IT exports for the fiscal year. Under the government’s ‘Uraan Pakistan’ economic roadmap, the long-term goal is to reach $10 billion by FY29, requiring a compound annual growth rate (CAGR) of 27 per cent.