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.

Articles tagged with "digital economy"

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

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