Islamabad: Pakistan’s information technology (IT) sector is showing sustained growth and is expected to cross USD 4 billion in exports by the end of the current financial year 2025–26, supported by policy continuity, expanding global client bases and growing contributions from freelancers.
According to data released by the State Bank of Pakistan (SBP), IT exports reached USD 1.8 billion during the first five months (July–November) of FY26, marking a 19% year-on-year increase compared to the same period last year.
Industry participants attribute the growth to multiple factors, including rising demand from international markets, particularly the Gulf Cooperation Council (GCC) region, greater exchange rate stability, and regulatory reforms by the SBP. These include increasing the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50% and allowing equity investment abroad through these accounts, measures aimed at encouraging exporters to repatriate earnings.
In November, IT exports stood at USD 356 million, up 14% year-on-year, though 8% lower on a month-on-month basis. Despite the monthly decline, the figure remained above the 12-month average of USD 337 million, reflecting overall resilience in export performance.
Former Pakistan Software Houses Association (P@SHA) chairman Muhammad Zohaib Khan said continued policy support and coordinated efforts by the government and IT industry bodies were delivering consistent gains. He noted that IT exports have become an important contributor to stabilising Pakistan’s current account, underlining the need for sustained supportive measures.
IT exporter Saad Shah said Pakistani firms were actively pursuing new markets, including ASEAN countries, as part of a long-term growth strategy. However, he cautioned that internet disruptions and slow speeds continued to affect productivity and limited the sector’s full export potential.
A recent P@SHA survey showed that 62% of IT companies now maintain specialised foreign currency accounts. Industry stakeholders believe the SBP’s Equity Investment Abroad (EIA) framework has further strengthened exporter confidence by allowing overseas investments using a portion of retained export proceeds.
Freelancers are also playing an increasingly important role. Pakistan Freelancers Association (PAFLA) Chairman Ibrahim Amin said the expansion of digital skills training programmes and the global rise of freelancing platforms had significantly increased Pakistan’s freelance workforce and export earnings.
In FY25, Pakistan’s IT exports reached a record USD 3.8 billion, driven by service diversification and improved delivery standards. With current trends holding, industry observers believe the sector is well-positioned to surpass the USD 4 billion mark in FY26, though challenges related to digital infrastructure remain a key concern.
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