IT Exports Hit Record $366 Million in September 2025
Pakistan’s information technology (IT) exports surged to a historic high of $366 million in September 2025, reflecting a 25 percent year-on-year (YoY) and 9 percent month-on-month (MoM) growth. The figure also exceeded the 12-month average of $326 million, marking a strong recovery in the sector’s foreign earnings.
With this increase, IT exports during the first quarter of FY26 have reached $1.06 billion, showing a 21 percent rise compared to the same period last year. Daily export proceeds averaged $16.64 million in September, up from $14.65 million recorded in August.
According to industry analysts, the notable growth stems from multiple factors, including an expanding global client base—especially in the GCC region—and policy support from the State Bank of Pakistan (SBP). The central bank recently enhanced the retention limit for Exporters’ Specialized Foreign Currency Accounts from 35 to 50 percent, allowing greater liquidity flexibility for exporters.
Moreover, the SBP’s decision to permit equity investments abroad through these accounts has improved investor confidence, while the stability of the rupee has encouraged IT firms to repatriate a larger share of profits to Pakistan.
A recent Pakistan Software Houses Association (P@SHA) survey revealed that 62 percent of IT companies now maintain specialized foreign currency accounts, reflecting growing reliance on flexible retention mechanisms. Analysts believe this financial freedom has been instrumental in sustaining export momentum.
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The Equity Investment Abroad (EIA) framework introduced by the SBP has further strengthened sector confidence, enabling IT exporters to invest up to 50 percent of their retained earnings in overseas ventures. Experts say this policy not only supports business expansion but also incentivizes the repatriation of proceeds.
Net IT exports, after adjusting for imports, stood at $330 million in September 2025, marking a 29 percent YoY and 8 percent MoM rise. This figure also surpasses the 12-month average of $286 million, underlining consistent growth across the sector.
The government has set an ambitious target of $5 billion in IT exports for FY26. However, analysts project a more conservative 18–20 percent annual growth, citing gradual demand stabilization and structural improvements. Under the ‘Uraan Pakistan’ national economic plan, the government aims to boost exports to $10 billion by FY29, implying a compound annual growth rate (CAGR) of 27 percent over the next four years.
Among listed firms, Systems Limited (SYS) remains a standout performer and a preferred investment choice, currently trading at 2025E and 2026F price-to-earnings ratios of 21.6x and 16.1x, respectively.
