Pakistan’s IT Exports Cross $4 Billion for the First Time

Pakistan’s information technology (IT) exports crossed the $4 billion mark for the first time during the first 11 months of the current fiscal year, reflecting the sector’s continued resilience and growing contribution to the national economy.

According to data released by the State Bank of Pakistan (SBP), exports of IT and IT-enabled services, including export receipts generated by IT companies and freelancers, reached $4.184 billion during July-May FY2025-26, compared to $3.475 billion recorded during the corresponding period of the previous fiscal year.

This represents a year on year increase of $709 million, or 20 percent, despite challenges such as internet disruptions and geopolitical uncertainties that affected business operations during the year.

Industry stakeholders attribute the sustained growth in IT exports to export-friendly government policies, continuity of incentives, and ongoing support for the sector. The government and relevant institutions have continued to promote Pakistan’s IT industry through international marketing initiatives, while facilitating foreign exchange inflows and attracting foreign direct investment.

On a monthly basis, IT export receipts stood at $373 million in May 2026, compared to $423 million recorded in April 2026. With one month remaining in the fiscal year, total IT exports are expected to close near $4.5 billion, falling short of the government’s annual target of $5 billion.

Looking ahead, the sector is expected to benefit from several relief measures announced in the federal budget. These include the extension of the reduced Final Tax Regime rate of 0.25 percent for another three years, a long standing demand of the IT industry. In addition, the withholding tax on international transactions made through payment cards has been reduced from 5 percent to 0.5 percent.

Industry experts believe these measures will improve the ease of doing business, encourage greater foreign exchange inflows, and further accelerate the growth of Pakistan’s IT exports in the coming years.