In December 2024, Pakistan’s IT sector achieved a historic milestone, recording its highest-ever monthly exports of $348 million. Despite facing significant challenges like internet disruptions and low connectivity, the sector showed remarkable resilience, marking a 15% year-on-year growth. This achievement highlights the strength and potential of Pakistan IT industry, led by dedicated firms and freelancers.
Record IT Exports in December 2024
In December 2024, Pakistan’s IT exports reached $348 million, a 15% increase compared to the previous year. This monthly export value surpassed the 12-month average of $299 million and represented a 12% rise from November 2024. This was the 15th consecutive month of growth in IT exports, starting from October 2023.
| Month | IT Exports (in Million USD) | Year-on-Year Growth | Month-on-Month Growth |
|---|---|---|---|
| December 2024 | $348 million | +15% | +12% |
| 12-Month Average | $299 million | – | – |
Key Factors Contributing to Growth
Several factors contributed to the growth of Pakistan’s IT exports in 2024. The global expansion of Pakistani IT companies, especially in the GCC (Gulf Cooperation Council) region, played a vital role. Additionally, the relaxation of the retention limit by the State Bank of Pakistan (SBP) allowed exporters to keep more profits, boosting confidence. The stabilisation of the local currency and the introduction of new investment opportunities also helped strengthen the IT sector.
| Contributing Factor | Impact |
|---|---|
| Global Expansion of Clients | Increased business in the GCC region |
| Relaxed Retention Limit by SBP | Allowed exporters to retain 50% of proceeds |
| Stabilisation of Local Currency | Encouraged exporters to repatriate profits |
| New Investment Opportunities (EIA) | Strengthened exporters’ confidence |
Role of Freelancers and IT Firms
Freelancers and IT companies have been instrumental in driving the growth of exports. The efforts of these professionals, along with events like Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference, helped expand Pakistan’s global presence. The adoption of specialised foreign currency accounts by many IT firms allowed them to manage their international business more effectively.
| Group | Contribution |
|---|---|
| IT Companies | Expanded client base globally |
| Freelancers | Contributed significantly to export value |
| Events & Conferences | Increased global business connections |
Survey Insights from P@SHA
According to a survey by the Pakistan Software Houses Association (P@SHA), 62% of IT companies maintain specialised foreign currency accounts. A significant move this year was the introduction of Equity Investment Abroad (EIA), which allows IT companies to invest up to 50% of their foreign currency account proceeds in foreign entities. This initiative boosted confidence and encouraged repatriation of export proceeds.
| Survey Insight | Result |
|---|---|
| Companies with Foreign Currency Accounts | 62% of IT companies maintained them |
| New EIA Category by SBP | Encouraged IT companies to invest abroad |
Connectivity Issues Still a Concern
Despite the impressive growth, the IT sector still faces significant hurdles in the form of interrupted and slow internet connectivity. These issues continue to cost millions of dollars in lost revenue, according to industry analysts. The inability to provide stable services affects both IT firms and freelancers, limiting the sector’s true potential.
| Issue | Impact |
|---|---|
| Slow Internet Connectivity | Lost revenue in millions |
| Interruptions in Connectivity | Delayed projects and client dissatisfaction |
Forecast for IT Exports
Muhammad Yasir, a senior analyst in the IT and telecom sector, predicts that Pakistan’s IT exports could reach between $3.6 billion and $4 billion by the
end of FY2024-25. However, he believes the sector might surpass the $4 billion mark due to the increasing contributions from both IT companies and freelancers. These optimistic projections are supported by Pakistan’s efforts to expand into non-traditional markets, such as the GCC region, alongside its traditional markets.
| Forecast for FY2024-25 | Projected Exports (in Billion USD) |
|---|---|
| IT Exports Forecast | $3.6 billion to $4 billion |
Call for Improved Internet Connectivity
Despite these promising figures, experts, including Yasir, emphasize the need for the government to address the ongoing internet connectivity issues. Improving the infrastructure for internet services is crucial for sustaining the growth of Pakistan’s IT sector and ensuring that the country can fully capitalize on its export potential. Enhanced connectivity would not only stabilize the sector but also support job creation and economic growth.
| Action Needed | Outcome |
|---|---|
| Improve Internet Infrastructure | Sustainable IT sector growth |
| Address Connectivity Issues | Increased IT export potential |
Summary
Pakistan IT sector has shown incredible resilience and growth, reaching record exports of $348 million in December 2024. While challenges like connectivity issues persist, the sector’s performance highlights the potential of Pakistan’s tech industry. With continued support and improvements in internet infrastructure, the country could further strengthen its position in the global IT market.
