Business

Pakistan’s IT exports rise by 9% in November

Published

1 year ago

Farwa

IT exports surge to 12-month high to $259m in Nov.
Surge is due to relaxation of permissible retention limit.
Computer services grow by 14% month-on-month.

KARACHI: Pakistan’s information technology (IT) exports surged by 9% month-on-month to $259 million in November, which is also the highest level in the past 12 months, The News reported on Friday.

According to brokerage firm Topline Securities, the jump is driven by a relaxation in the permissible retention limit by the State Bank of Pakistan (SBP), which allowed IT exporters to keep 50% of their foreign earnings in their specialised accounts, up from 35% previously.

A stable rupee also encouraged IT companies to repatriate their foreign income and deposit it in local accounts. Caretaker IT Minister Umar Saif said that IT companies had parked an estimated $1-2 billion outside of Pakistan, which could be brought back to boost the country’s foreign exchange reserves.

The IT export figure reflects the amount remitted back to Pakistan by technology companies, which provide services such as software development, web design, data processing, and call centres to clients worldwide.

Computer services, which accounted for 83% of the total IT exports in November 2023, grew by 14% month-on-month and 20% year-on-year, while telecom services, which made up 17%, declined by 11% month-on-month.

Other computer services, such as consulting, training, and maintenance, recorded the highest growth rate of 28% month-on-month, followed by the export of computer software, which increased by 14% month-on-month.

In the first five months of the fiscal year 2023-24 (July-November), IT exports rose by 6% year-on-year to $1.2 billion, representing 7.4% of the total exports of the country. Net IT exports, which deduct IT imports from IT exports, also increased by 11% month-on-month and 7% year-on-year to $226 million in November 2023.

On a trailing 12-month basis, net IT exports reached $2.4 billion, up by 10% year-on-year.

The IT sector is expected to benefit from the global and regional trends of increasing spending on software and IT services, as per a report by Gartner, a technology research and consulting firm.

Gartner projected that worldwide spending on software would grow by 13.8% and spending on IT services would increase by 10.4% in 2024.

MENA (Middle East and North Africa) software spending was forecast to record double-digit growth of 12.3% in 2024, followed by IT services spending growing at 11.1% next year, to accelerate digitalisation and automation in the region.

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

2 days ago

Farwa

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.

Business

In January 2025, RDA inflows reach 9.564 billion USD.

Published

2 weeks ago

Farwa

Remittances under the Roshan Digital Account (RDA) increased from US $9.342 billion at the end of 2024 to US $9.564 billion by the end of January 2025.

The most recent data issued by the State Bank of Pakistan (SBP) revealed that remittance inflows in January totaled US$222 million, compared to US$203 million in December and US$186 million in November 2024.

Millions of Non-Resident Pakistanis (NRPs), including those who own a Non-Resident Pakistan Origin Card (POC), desire to engage in banking, payment, and investing activities in Pakistan using these accounts, which offer cutting-edge banking options.

Nearly 778,697 accounts were registered under the scheme by the end of January 2025, according to the data.

By the end of January, foreign-born Pakistanis had contributed US $59 million to Roshan Equity Investment, US $479 million to Naya Pakistan Certificates, and US $799 to Naya Pakistan Islamic Certificates.

Business

FBR lowers Karachi’s built-up structure property valuation rates

Published

2 weeks ago

Farwa

A year-by-year breakdown of the depreciation value of residential and commercial built-up properties is included in the updated property valuation rates for Karachi that the FBR has announced.

The notification said that built-up structural values on residential property will be gradually reduced.

A residential home’s built-up structure, which is five to ten years old, will lose five percent of its worth.

In a similar vein, constructions between the ages of 10 and 15 will lose 7.5% of their value, while those between the ages of 15 and 25 would lose 10%. Built-up structures that are more than 25 years old will be valued similarly to an open plot.

Furthermore, age will also be used to lower the valuation of built-up properties, such as apartments and flats.

Structures that are five to ten years old will depreciate by ten percent, while those that are ten to twenty years old will depreciate by twenty percent. A 30% depreciation will be applied to properties that are 20 to 30 years old, while a 50% reduction will be applied to those that are above 30 years old.

In terms of commercial built-up properties, buildings that are 10 to 15 years old will lose 5% of their value, while those that are 15 to 25 years old will lose 8%. The value of properties that are more than 25 years old will drop by 10%.

In contrast, there would be a 15% boost in the value of commercial properties in the Defence Housing Authority (DHA) that face any Khayaban.