IT Exports Hit Record High in March 2025

Pakistan’s information technology exports reached a record high of USD 342 million in March 2025, marking a 12 percent year-on-year increase and a similar 12 percent rise month-on-month. According to Topline Securities, this figure also surpasses the 12-month average of USD 311 million, continuing the sector’s impressive growth streak, which has now lasted 18 consecutive months since October 2023. With this performance, IT exports during the first nine months of FY25 (9MFY25) have climbed to USD 2.8 billion, reflecting a 24 percent increase compared to the same period last year. Export proceeds averaged USD 18.0 million per day in March, up from USD 16.1 million in February. The sustained growth in IT exports has been attributed to multiple factors: Pakistani IT firms have been actively engaging with global markets, recently participating in major events such as LEAP 2025 in Saudi Arabia and Web Summit Qatar 2025. According to a survey by the Pakistan Software Houses Association (P@SHA), 62 percent of IT companies are currently maintaining specialized foreign currency accounts. A major development in FY25 has been the introduction of a new category—Equity Investment Abroad (EIA)—by the State Bank, which allows export-oriented IT companies to acquire stakes in overseas entities using up to 50 percent of their foreign currency proceeds. This is expected to further strengthen exporters’ confidence in remitting earnings back to Pakistan. Net IT exports (exports minus imports) in March 2025 stood at USD 311 million, up by 13 percent year-on-year and 12 percent month-on-month. This also surpasses the 12-month average of USD 269 million. Analysts expect the IT sector’s momentum to continue, projecting annual growth of 10–15 percent for FY25, potentially reaching between USD 3.5 billion and USD 3.7 billion. Under the government’s ‘Uraan Pakistan’ economic strategy, the target for IT exports has been set at USD 10 billion by FY29, which implies a compound annual growth rate (CAGR) of 28 percent. Within the sector, Systems Limited (SYS) remains a top investment pick. It is currently trading at forecasted FY2025 and FY2026 price-to-earnings multiples of 13.4x and 10.1x, respectively.