“This marks the pinnacle of monthly exports, with the preceding record set at $306 million in March 2024,” stated a brokerage firm.
Official data unveiled a remarkable leap in Pakistan’s IT export remittances, soaring to a record $310 million in April 2024 from $191 million in the corresponding period last year, reflecting a substantial 62.3% year-on-year (YoY) upsurge.
This substantial upswing underscores the burgeoning trajectory of Pakistan’s ICT sector, propelled by escalating global demand for tech services and reinforced governmental backing for the industry.
Furthermore, the monthly IT exports experienced a modest uptick of 1% from March, which held the previous record at $306 million. “This stands as the highest export figure ever recorded in a single month, surpassing the prior peak of $306 million in March 2024,” remarked brokerage firm Topline Securities in a statement.
“These April IT exports outshine the 12-month average of $245 million.”
Notably, last month’s IT exports eclipsed the 12-month average of $245 million as well.
The YoY surge in IT exports was primarily propelled by three factors, as outlined by the brokerage: the proliferation of IT export enterprises in Gulf nations, particularly Saudi Arabia; the stability of the Pakistani rupee; and the central bank’s relaxation of the retention threshold in Exporters’ Specialised Foreign Currency Accounts, elevating it from 35% to 50%.
According to local media sources, net IT exports surged to over $275 million in April 2024, registering a robust 68% YoY escalation, surpassing the average of $214 million over the past 12 months.
Meanwhile, net IT exports soared by 20% YoY to $2.28 billion in the initial 10 months of fiscal year 2024, with total exports reaching $2.59 billion.
During the first ten months of FY24, IT exports amounted to $2.59 billion, marking a 21% YoY increase compared to $2.14 billion recorded in the same period of FY23.
The augmented retention facility of 50% was introduced by the interim government of Pakistan. At the time, the then interim IT minister expressed optimism that this initiative would bolster IT exports by an additional $1.0 billion atop the $2.6 billion recorded in FY23.
“However, the target of $3.5-3.6 billion is unlikely to be met in FY24, with IT exports anticipated to close in the vicinity of $3.1-3.2 billion,” the brokerage forecasted.