According to government data released on Monday, remittances from Pakistan’s IT exports surged to a record $310 million in April 2024 from $191 million in the same month the previous year, marking a 62.3% YoY increase.
The noteworthy rise highlights the quick expansion of Pakistan’s ICT sector, which has been propelled by increased government backing for the sector and the growing demand for technology services globally.Additionally, there was a 1% increase in monthly IT exports compared to March, the previous greatest month at $306 million. Brokerage Topline Securities stated in a report that “this is the highest ever export number in a single month, with the previous highest being $306 million in March 2024.”
“These monthly IT exports in April are higher than the last 12-month average of $245 million.”
The IT industry’s exports last month exceeded the $245 million 12-month average as well.
The growth of IT export companies in the Gulf, particularly Saudi Arabia, the stability of the Pakistani rupee, and the central bank’s raising of the retention limit in Exporters’ Specialized Foreign Currency Accounts from 35% to 50% are the three main factors driving the YoY increase in IT exports, according to the brokerage house.
A local media article states that in April 2024, net IT exports reached a height of almost $275 million, indicating a 68% YoY increase and exceeding the average of $214 million over the previous 12 months.
In contrast, during the first ten months of the fiscal year 2024, net IT exports increased by 20% YoY to $2.28 billion, eventually reaching $2.59 billion.
IT exports reached $2.59 billion in 10MFY24, a 21 percent year-over-year increase from $2.14 billion in 10MFY23.
The Pakistani caretaker government implemented the increased retention facility of 50%. The interim IT minister at the time claimed that this facility would increase IT exports by $1.0 billion, on top of the $2.6 billion that had been recorded in FY23.
“However, this target of $3.5-3.6 billion is not likely to be achieved in FY24, with IT exports set to close in the region of $3.1-3.2 billion,” the brokerage stated.
