Key Points
- IT exports reach $2.61 billion in July–January FY26
- The sector records nearly 20% year-on-year growth
- Digital services gain share in overall export mix
- Government targets $10 billion in IT exports in the coming years
ISLAMABAD: Pakistan’s information technology (IT) exports rose nearly 20 per cent year-on-year to $2.61 billion during the first seven months (July–January) of the current fiscal year 2025–26, underscoring the sector’s growing role in supporting the country’s fragile external accounts.
Data released by the State Bank of Pakistan shows that IT and IT-enabled services exports increased from about $2.18 billion in the same period last year to $2.61 billion this fiscal year. The steady rise reflects continued demand for Pakistani software development, business process outsourcing, freelancing, and other digital services in North America, Europe and the Middle East.
Officials at the Ministry of Information Technology and Telecommunication attribute the growth to an expanding base of technology firms, a large pool of young, skilled professionals and policy incentives designed to facilitate foreign exchange repatriation and ease of doing business for exporters.
The IT sector remains one of Pakistan’s fastest-growing export segments, although it still represents a smaller share compared to traditional merchandise exports, such as textiles.
According to the Pakistan Bureau of Statistics, textiles and related products continue to account for the bulk of the country’s goods exports, reflecting the long-standing structure of Pakistan’s export economy.
Overall, Pakistan’s total exports of goods and services during the first seven months of FY26 stood at approximately $18 billion, significantly below its import bill, which has historically been substantially higher. This persistent trade gap has placed pressure on foreign exchange reserves and highlighted the need to diversify and expand high-value export sectors, particularly services.
Overall exports of goods and services — which include textiles, agricultural products, minerals and IT services — also posted growth in the same period. Pakistan’s total exports for the first seven months of FY26 amounted to approximately $18.2 billion, up from $15.9 billion during July–January FY25.
This reflects an approximate 14.5% year-on-year increase in total export earnings, according to data compiled by the Pakistan Bureau of Statistics and the State Bank.
Unlike commodity-based exports, IT services are less vulnerable to global price swings and shipping disruptions.
They also offer higher value addition and employment potential. Analysts say sustained double-digit growth in IT exports could gradually improve Pakistan’s export composition and reduce reliance on low-margin sectors.
The government has set ambitious targets to raise IT exports to $10 billion over the next few years, as part of a broader strategy to strengthen digital infrastructure, promote startups and integrate Pakistani firms into global technology supply chains. Achieving that goal would require improvements in internet reliability, regulatory clarity, access to international payment systems and advanced technical training.
For now, the nearly 20 per cent growth in the first seven months of the fiscal year signals continued momentum in a sector increasingly viewed as central to Pakistan’s long-term economic transformation.
