Pakistan IT exports on track for $5Bn in FY2026
KARACHI, PAKISTAN — Pakistan’s information technology (IT) sector is on track to hit a historic US$5 billion in annual exports, driven by record monthly earnings and sustained growth momentum in the global tech market.
According to a report by The Express Tribune, the State Bank of Pakistan (SBP) said IT and IT-enabled services exports reached US$437 million in December 2025, marking the first instance of monthly export revenue exceeding US$400 million.
The sector shows increased global market competitiveness through its 23% monthly growth and 26% annual growth rate.
Record IT export growth driven by SBP data
The increase represents a continuous pattern that extends beyond its current peak. The SBP data indicate that total IT exports during the first six months of FY2025-26 (from July to December) reached $2.24 billion, showing an increase from the $1.87 billion total of the previous year.
“This milestone is not an isolated spike but part of a sustained upward trend that has been building over several years,” the SBP noted.
By comparison, Pakistan’s IT sector reached a historic milestone in December 2024, recording its highest-ever monthly exports of US$348 million, signaling steady year-on-year acceleration.
The monthly export records for FY2025-26 show that the total exports reached US$342 million in March and US$386 million in October, while displaying permanent structural improvements that exceed temporary market fluctuations.
Policy reforms, global outsourcing fuel tech expansion
Multiple factors support this expansion. The IT sector gained advantages from key policy changes, which raised the Exporters’ Specialised Foreign Currency Accounts (ESFCA) retention limit from 35% to 50%, allowing IT companies to keep additional foreign currency.
The Equity Investment Abroad framework further enables firms to invest in overseas subsidiaries, strengthening global presence.
Global outsourcing trends have also played a role. The growing tendency of companies to outsource their software development, cybersecurity, and digital transformation projects has led to increased international recognition of Pakistan’s affordable IT services.
Freelancers and small and medium enterprises (SMEs) have emerged as major contributors, with estimates suggesting freelance-driven inflows could reach US$800 million to US$1 billion annually, formalized through banking channels.
The sector’s growth is reshaping Pakistan’s economic landscape. IT exports now make up over 40% of total services exports, supporting foreign exchange stability, high-value job creation, and entrepreneurship.
If monthly exports remain in the US$400–450 million range, the US$5 billion annual milestone for FY2025-26 appears within reach.
The trajectory positions Pakistan as an increasingly prominent player in global outsourcing. The IT sector of the country will achieve its status as a vital driver of services-based economic development through ongoing policy backing, infrastructure development, and workforce training initiatives.
