IT Exports Up By 42% in September 2024

The country’s information technology and IT-enabled services (ITeS) export remittances comprising computer services and call center services went up by 42 percent to $292 million during September 2024 compared to $206 million in the same period last year, latest data from the State Bank of Pakistan (SBP) revealed on Monday. During September 24, technology exports went up 42 percent YoY but down 2 percent MoM, still contributing 44 percent of the overall services exports. In the first quarter of fiscal year 2024-25, technology exports were up 34 percent at $876 million compared to $656 million in 1QFY24. IT export remittances reached an all-time high of $3.223 billion in the fiscal year 2023-24 while registering 24 percent growth when compared to $2.596 billion in 2022-23. Minister of State for IT and Telecommunication Shaza Fatima Khawaja shared that YoY jump in IT exports is due to (i) IT export companies growing client base globally, especially in GCC region, (ii) relaxation in the permissible retention limit by the State Bank of Pakistan, increasing it from 35 percent to 50 percent in the Exporters’ Specialized Foreign Currency Accounts, and (iii) stability in PKR encouraging IT exporters to bring higher portion of profits back to Pakistan. According to the Pakistan Software Houses Association (P@SHA) survey 62 percent of IT companies are maintaining specialized foreign currency accounts. A major development in July 2024 was SBP adding a new category of Equity Investment Abroad (EIA), specifically for export-oriented IT companies. IT exporters can now acquire interest (shareholding) in entities abroad utilizing up to 50 percent of proceeds from specialized foreign currency accounts. This development will further boost the confidence of IT exporters to remit proceeds back to Pakistan.