KARACHI: In July, the value of Pakistan’s IT exports hit a record high of $354 million, representing a 24% YoY and a 5% MoM increase.
This amount shows the sector’s growth as it exceeds the 12-month average of $317 million.
Topline Securities’ Sani Irfan reported that July’s daily export earnings were $15.4 million, down from $17.8 million in June. The growth in computer services, which increased 10 percent month over month to $311 million, was a major contributor to the overall gain. Exports of software consulting in particular increased significantly, rising from $96 million in June to $104 million in July.
Irfan ascribed the year-over-year growth to a number of causes, including the growth of the clientele of IT firms worldwide, particularly in the GCC. She also emphasized how the State Bank of Pakistan (SBP) loosened the allowable retention cap for exporters’ specialized foreign currency accounts, raising it from 35 percent to 50 percent.
The stability of the Pakistani currency and the flexibility to invest equities overseas through these accounts encouraged IT exporters to repatriate a larger percentage of their earnings to Pakistan.
Sixty-two percent of IT companies have specialized foreign currency accounts, according to a poll conducted by the Pakistan Software Houses Association (P@SHA).
Confidence in remitting export revenues has been further increased by the SBP’s creation of the Equity Investment Abroad (EIA) plan, which permits IT exporters to purchase foreign equity using up to 50% of the proceeds from these accounts.
In July, net IT exports, which are calculated as exports less imports, came to $317 million, up 4 percent month over month and 26 percent year over year.
SOURCE: DAWN NEWS
