KARACHI: IT exports surged to $298 million in August, marking a 27 per cent increase from the previous year, according to data from the State Bank of Pakistan (SBP) released on Wednesday
IT exports increased by 4.0 per cent on a month-on-month basis in August.These monthly IT exports in August are higher than the last 12-month average of $275 million.
“The YoY jump in IT exports is due to the IT export companies growing client base globally, especially in the GCC region, relaxation in the permissible retention limit by the SBP, increasing it from 35 per cent to 50 per cent in exporters’ specialized foreign currency accounts, and stability in Pakistani rupee, encouraging IT exporters to bring a higher portion of profits back to Pakistan,” said Topline Securities in a note.
The MoM increase in IT exports is due to a higher number of working days in August (21) compared to July (20), it said.Export proceeds per day were recorded at $14.2 million for August, compared with $14.3 million in the previous month, it added.
Pakistani IT companies are active in engaging with global clients. Recently leading IT companies of Pakistan attended London Tech Week 2024, Collision Canada 2024, and Black Hat, USA.
According to the Pakistan Software Houses Association (PSHA) survey, 62 per cent of IT companies are maintaining specialized foreign currency accounts.A major development in July was the 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 per cent of proceeds from specialized foreign currency accounts. This development will further boost the confidence of IT exporters to remit proceeds back to Pakistan, according to the Topline report.
Net IT exports (exports-imports) displayed a monthly number of $257 million and a 26 per cent YoY increase in August. These net IT export numbers in August 2024 are also higher than the last 12-month average of $241 million, it said. “We believe the IT sector will continue its growth trajectory and momentum with a likely growth of 10-15 per cent for FY25 to $3.5-3.7 billion,” it added.