Amir Saeed

Experts have called for reforming the digital repatriation policies to create a more transparent, investor-friendly environment that supports sustained growth and global competitiveness in Pakistan’s IT sector.

Talking to WealthPK, Muhammad Iqbal Kakakhail, Chief Executive Officer and Co-Founder of IdeoMetriX Private Limited, a digital consultancy, considers the recent surge in Pakistan’s IT exports as clear evidence of the sector’s promising potential.   He believed Pakistan is on the right path, with exports reaching $317 million in April 2025, registering 21% increase in the first 10 months of the ongoing fiscal year compared to the corresponding period of FY24.

Kakakhail appreciated regulatory changes by the State Bank of Pakistan, such as raising the retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50% and allowing equity investments abroad using these funds, which he said empowered IT firms to better manage their earnings and investments. However, Kakakhail stressed that challenges in digital repatriation policies still posed a risk to attracting sustained foreign investment.

He highlighted that simplifying profit repatriation procedures and ensuring consistent, investor-friendly policies are critical to maintaining growth momentum and achieving the government’s ambitious target of $10 billion in IT exports under the Uraan Pakistan plan. For Kakakhail, government initiatives supporting infrastructure and international collaborations are positive, but further reforms are essential to fully unlock the sector’s potential.

Talking to WealthPK, Anees Amin, Chief Executive Officer of TechScape Private Limited, highlighted the steady increase in IT exports as promising, while remaining mindful of the real challenges encountered by freelancers and small businesses. “While the sector’s expansion to $3.1 billion in exports over 10 months and the optimistic projection of $4 billion for the fiscal year ending June 30, 2025 reflect progress, digital repatriation restrictions still limit the ease with which freelancers and foreign investors can access their earnings,” he said.

He welcomed the State Bank’s reforms, including the increased retention limits and the new Equity Investment Abroad category, but believes more needs to be done to simplify processes and provide stable tax incentives. Amin emphasised that these reforms are crucial not only for attracting foreign investment but also for enabling freelancers to compete on a global scale and make a significant contribution to the country’s digital economy.

He endorsed the government’s emphasis on export-driven policies and expressed hope that facilitating repatriation and enhancing access to international payment gateways would help the country maintain its double-digit growth in IT exports.

Credit: INP-WealthPk