Faraz Saeed

LAHORE: Pakistan&rsquo;s IT sector is quietly scripting one of the country&rsquo;s most compelling economic turnarounds. In an environment often overshadowed by macroeconomic pressures, the digital economy is expanding steadily, reshaping export dynamics and signaling a deeper structural transformation.&nbsp;According to data released by the Ministry of Information Technology and Telecommunication, ICT export remittances increased to $2.61 billion during July&ndash;January FY2025-26, marking a 19.78% rise from $2.18 billion in the same period last year. Although the growth has been steady rather than sporadic, it remains consistent.&nbsp;In January alone, ICT services exports reached $374 million, up 19.5% from January 2025, a clear sign of sustained global demand for Pakistani IT and IT-enabled services.&nbsp;Within the services sector, ICT has emerged as the undisputed frontrunner. While &ldquo;other business services&rdquo; generated $1.21 billion over the same seven-month period, the digital segment outpaced every other category, reinforcing its position as Pakistan&rsquo;s most dynamic export performer.&nbsp;The surge reflects more than favorable numbers: it reveals a maturing ecosystem. Improved internet connectivity, competitive pricing, a rapidly expanding talent pool, and targeted government incentives have collectively strengthened the industry&rsquo;s export capacity.&nbsp;Pakistani firms are increasingly delivering sophisticated solutions in software development, fintech integration, cloud services, cybersecurity, and enterprise resource management sectors once dominated by established global tech hubs.&nbsp;Rise of freelancersYet the corporate success story is only one side of the transformation. The other, perhaps more striking, development lies in the rise of freelancers, an army of digitally skilled individuals exporting services directly to global clients.&nbsp;Figures from the State Bank of Pakistan show that freelancers earned $557 million in foreign exchange during the first half of FY26, up 58% year on year from $352 million in the same period last year.&nbsp;The extent of this growth shows how deeply the gig economy has become part of Pakistan&rsquo;s external accounts.&nbsp;From software engineers and digital marketers to graphic designers, content creators, and e-commerce specialists, Pakistani freelancers are tapping into global platforms at unprecedented levels.&nbsp;An Asian Development Bank assessment estimates the country&rsquo;s freelance community at around 2.37 million full-time and part-time workers, placing Pakistan among the world&rsquo;s largest freelancing markets.&nbsp;Policy reforms have helped formalize and incentivize this segment. Freelancers can now maintain foreign currency accounts and retain up to 50% of their income in dollars. Those registered with the Pakistan Software Export Board benefit from a reduced tax rate of just 0.25%, a move aimed at encouraging documentation while keeping the sector competitive.&nbsp;Industry leaders argue that Pakistan&rsquo;s edge lies not merely in cost competitiveness, but in capability.&nbsp;Speaking to Pakistan TV Digital, Sajjad Mustafa, chairman of the Pakistan Software Houses Association (PASHA), credits the sector&rsquo;s revival to export-driven companies that have steadily expanded their global footprint.&nbsp;He points to Pakistan&rsquo;s demographic advantage, a substantial youth bulge, alongside improving product quality, efficient software engineering practices, and strong algorithmic development skills.&nbsp;He notes that the ability to build reliable, scalable solutions with relatively modest compute resources has made Pakistani firms attractive outsourcing partners for international companies.&nbsp;What stands out is the sector&rsquo;s resilience. Even amid domestic economic volatility and infrastructural bottlenecks, ICT exports continue to rise. The industry&rsquo;s growth indicates protection from traditional challenges faced by manufacturing and commodity-based exports.&nbsp;Target for 2026Looking ahead, ambition is high. The government has set a target of $5 billion in IT exports for FY26, though analysts project exports may reach around $4.5 billion, reflecting annual growth of 18-20% from the $3.8 billion recorded in FY25.&nbsp;Under the broader economic transformation framework, Uraan Pakistan&#39;s policymakers aim for $10 billion in IT exports by FY29, a goal that would require a compound annual growth rate of roughly 27% over the next several years.&nbsp;Reaching that milestone will require sustained policy stability, investment in advanced skills such as artificial intelligence and cybersecurity, streamlined payment systems, and ongoing improvements in digital infrastructure. However, if current trends continue, the goal may be within reach.&nbsp;Pakistan&rsquo;s digital economy is no longer just an emerging story; it is steadily becoming a key part of the country&rsquo;s export narrative.&nbsp;In an age driven by data, connectivity, and innovation, the nation&rsquo;s strongest growth driver may very well be the code written in homes, offices, and tech hubs, quietly fueling a new era of economic resilience.

Artificial Intelligence

Pakistan’s IT exports rose nearly 20% to $2.61 billion in FY26’s first seven months, driven by strong global demand and booming freelancing earnings. With supportive policies and a growing talent pool, the sector targets $5 billion in exports.

Pakistan’s tech exports hit $2.61B; freelancer earnings soar 58%

Web Desk

ISLAMABAD: Pakistan&rsquo;s information technology sector recorded a historic milestone last December, with monthly exports reaching a record $437 million, the first time they have crossed the $400 million mark, official figures show.&nbsp;According to data cited by Radio Pakistan, the sharp rise underscores sustained momentum in the country&rsquo;s IT and IT-enabled services industry. The figures were confirmed by Khurram Schehzad, advisor to the finance minister, who disclosed the numbers in a public statement.&nbsp;&ldquo;December 2025 exports reached $437 million, crossing $400 million in a month for the first time ever,&rdquo; Schehzad said.&nbsp;The December performance reflects strong growth trends. IT exports rose 23% month-on-month from $356 million in November 2025 and posted a 26% year-on-year increase compared with $348 million in December 2024.&nbsp;During the first half of fiscal year 2025&ndash;26 (FY26), <a href="https://www.pakistantv.com/article/pakistans-it-exports-cross-1bn-in-single-quarter-experts-eye-4bn-annually" target="_blank" style="color:#0073e6;" rel="noopener noreferrer">Pakistan&rsquo;s IT</a> exports totaled $2.24 billion, marking a 20% increase from the same period last year. This growth has positioned the IT sector as the largest and most consistent contributor within the country&rsquo;s services exports.&nbsp;Officials say the record-breaking figures highlight the expanding role of technology-driven services in Pakistan&rsquo;s export portfolio and their growing contribution to foreign exchange earnings and overall economic stability.

Economy

Finance minister’s aide says Pakistan’s IT sector becomes the top services exporter, as first-half FY26 exports rise 20% to $2.24 billion, reflecting sustained growth and global demand.

Pakistan IT exports surpass $400 million monthly for first time

ISLAMABAD: Pakistan&rsquo;s information technology (IT) and IT-enabled services exports reached $1.057 billion in the July-September 2025 quarter, according to data from the State Bank of Pakistan (SBP). This marks the first time the country has surpassed the $1 billion threshold in a single quarter, a 20% increase from $877 million in the same period last year, noted the Head of Equity Research at JS Global, Waqas Ghani. In the first quarter of fiscal year (FY) 2026, IT exports accounted for 48% of total services exports, as per the SBP. The sector has grown steadily from $300 million in the first quarter of FY 2020 to over $1.1 billion in the first quarter of FY 2026. Last fiscal year, the sector reached $3.8 billion in total exports. Third-largest source of foreign exchange IT is Pakistan&rsquo;s third-largest source of foreign exchange, after textiles and rice. It accounts for 45% of total services exports by the end of FY 2025, according to the IT and Telecom Ministry. Waqas Ghani said IT remains a key sector with a consistent trade surplus. &ldquo;Last fiscal year, the sector posted an 87% trade surplus. This was driven by strong demand for software development, IT-enabled services, and freelance exports,&rdquo; he told PakistanTV Digital. Technology analyst Ali Raza called the $1 billion quarterly milestone a sign of growth. &ldquo;The ecosystem has matured, the talent base is stronger, and confidence in our digital infrastructure is increasing,&rdquo; he said. Government&rsquo;s ambitious aims The government has set a target of $5 billion in IT exports for FY 2026 under the &ldquo;Uraan Pakistan&rdquo; initiative. The aim is to reach $10 billion by 2029, positioning technology as a key driver of economic growth. The sector&rsquo;s expansion has been supported by policy changes, including the SBP&rsquo;s decision to raise the retention limit for exporters&rsquo; foreign currency accounts from 35% to 50%. The move provides exporters with greater control over earnings and investment abroad. Stable exchange rates have further encouraged the repatriation of profits, improving the financial environment for exporters.

Pakistan’s IT exports hit $1.057 billion in July-September 2025, marking record growth supported by government targets, policy support, and expanding global market presence.

Articles tagged with "Pakistan IT sector"

Pakistan’s tech exports hit $2.61B; freelancer earnings soar 58%

Pakistan IT exports surpass $400 million monthly for first time

Pakistan’s IT exports cross $1 billion in single quarter