IT exports hit all-time high of $3.2 billion

Mark 24% YoY increase driven by GCC expansion, favourable policies

KARACHI:

The export of IT and IT-enabled services from Pakistan soared to an all-time high of $3.2 billion in the financial year 2023-24. According to data released by the State Bank of Pakistan (SBP), this marks a 24% year-on-year increase, amounting to an additional $627 million compared to the previous financial year.

Topline Research attributes this significant growth to several factors: the expansion of IT export companies in the GCC region, particularly Saudi Arabia; the SBP’s decision to relax the retention limit in exporters’ specialised foreign currency accounts from 35% to 50%; and the rupee stability, which encouraged IT exporters to repatriate a larger portion of profits to Pakistan.

Pakistani IT companies have been actively engaging with clients in the GCC. In March 2024, a delegation of 38 IT companies attended the Leading Edge Advancement and Progress (LEAP) event in Saudi Arabia. In May 2024, Pakistan’s prime minister and IT minister attended the UAE-Pakistan Tech Collaboration in Abu Dhabi.

A survey by the Pakistan Software Houses Association (PASHA) revealed that 62% of IT companies are maintaining Special Foreign Currency Accounts. Saad Shah, a leading IT exporter, noted that Pakistan has enhanced its exports to both traditional and non-traditional markets, including the United States, the United Kingdom, Saudi Arabia, the UAE, and Australia.

Several leading IT companies have adopted the blue ocean strategy, focusing on enterprise solutions, artificial intelligence, and machine learning, resulting in substantial earnings inflows. The CEO of Hexalyze stressed that Pakistan’s IT industry should invest in human capital to meet the increasing demand in both the local IT industry and the export sector.

Dr Noman Said, another prominent IT exporter and CEO of SI Global, urged educational authorities to standardise the IT syllabus across all educational boards in Pakistan. He argued that a uniform curriculum would ensure equal opportunities for students nationwide.