Remittances for ICT services exports jumped to US$ 310 million in April 2024, a remarkable 62.3% increase from US$ 191 million in the same month the previous year.
Shaza Fatima Khawaja, the minister of state for information technology and telecommunications, stated in a statement that this remarkable surge in IT exports in just one month had never before occurred in Pakistan’s history.
Compared to US$ 2.135 billion recorded for the same period previous year, ICT export remittances have increased to US$ 2.593 billion from July 2023 to April 2024 in FY2023–2024.
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.
Read more: Pakistan’s IT exports rise by 37% to record $306 million in March
April’s monthly IT exports exceeded the $245 million average for the previous 12 months.”
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’ Specialised 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 caretaker administration of Pakistan implemented a 50% higher retention facility. This facility would increase IT exports by $1.0 billion, on top of the $2.6 billion that were recorded in FY23, according to the then interim IT minister.
“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,” according to the brokerage.