Karachi, Pakistan – Pakistan’s Information Technology (IT) sector demonstrated robust growth in June 2025, recording $338 million in exports, a significant 14% increase year-on-year and a 3% rise month-on-month. This figure surpassed the 12-month average of $314 million, according to a report by brokerage firm Topline Securities.

This strong performance culminated in total IT exports of $3.8 billion for Fiscal Year 2025 (FY25), marking an impressive 18% growth compared to $3.2 billion in FY24.

Topline Securities attributes this notable expansion in IT exports during FY25 to several key factors:

• Global Client Expansion: Pakistani IT companies have successfully broadened their international client base, particularly within the Gulf Cooperation Council (GCC) region.
• Relaxed Retention Limits: The State Bank of Pakistan (SBP) eased regulations, increasing the permissible retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50%.
• Equity Investment Abroad (EIA) Allowance: A new framework introduced by the SBP permits IT exporters to make equity investments in foreign entities using funds from their specialized foreign currency accounts.
• Rupee Stability: A stable Pakistani Rupee (PKR) encouraged IT exporters to repatriate a larger portion of their overseas earnings.

Pakistani IT firms have been actively engaged on the global stage, with leading companies recently participating in prominent events such as London Tech Week 2025 and the Pak-US Tech Investment Conference. A survey conducted by the Pakistan Software Houses Association (P@SHA) revealed that 62% of IT companies maintain specialized foreign currency accounts, underscoring the industry’s engagement with foreign currency management.

A significant development in FY25 was the SBP’s introduction of the Equity Investment Abroad (EIA) category, specifically tailored for export-oriented IT companies. This framework allows IT exporters to acquire equity (shareholding) in foreign entities by utilizing up to 50% of the proceeds held in their specialized foreign currency accounts. This strategic move is anticipated to further bolster the confidence of IT exporters in remitting their earnings back to Pakistan.

Looking ahead, Topline Securities forecasts continued positive momentum, projecting IT exports to grow by 10-15% in FY26. This optimistic outlook highlights the sector’s increasing potential as a key driver of economic growth for Pakistan.