Pakistan’s IT exports continued their strong run in 1QFY27, reaching USD1.25 billion, up 18 percent from USD1.06 billion in the same period last year. The growth is encouraging, especially as it comes on an already expanding base.
The sector continues to be one of the better performers in Pakistan’s external account, but the question is how long this momentum can be sustained and whether the industry can move beyond its traditional strengths.
The monthly numbers are equally encouraging. ICT exports reached USD435 million in September 2026, up 19 percent year-on-year and 10 percent month-on-month. This was the highest monthly level in nine months, although the month-on-month increase was partly due to a higher number of working days. Exports remained above USD390 million in each of the first three months of FY27, pointing towards a fairly consistent growth trend.
Looking at what makes up these exports, computer services dominate, accounting for nearly 86 percent of the total in 1QFY27, or USD1.07 billion. Software consultancy and freelancing were the largest contributors. Together, these two segments made up nearly 56 percent of total ICT exports, with both growing by over 20 percent. Freelancing was particularly strong in Sep-26, rising 32 percent year-on-year. Telecommunications services, meanwhile, contributed USD177 million during the quarter, largely supported by call centre exports, which grew 24 percent.
On a trailing twelve-month basis, IT exports have reached around USD4.8 billion, compared to USD4 billion a year earlier. This is a significant achievement at a time when Pakistan’s traditional merchandise exports continue to struggle with growth and diversification.
However, the country-wise numbers reveal an interesting trend. Pakistan’s IT exports remain heavily concentrated in a few markets. The US alone accounted for around 57 percent of ICT exports in 1QFY27. The UAE was the second-largest market, followed by the UK, Ireland, and Singapore. This dependence on the US is not new. In FY26, exports to the US stood at USD2.59 billion, almost double the USD1.3 billion recorded in FY21. Meanwhile, the UAE has emerged as a growing market, with exports increasing from USD152 million to USD536 million over the same period. While there is some diversification, the industry remains heavily dependent on a handful of markets. This is both a strength and a risk, particularly when global technology spending and outsourcing demand are changing.
Pakistan has a young workforce, a growing freelance community and a cost advantage in international markets. These have helped the industry expand, but much of the growth continues to come from software development, consultancy, and outsourcing, while progress towards developing own products, intellectual property and more specialised technology services has been relatively limited.
And this is where artificial intelligence becomes important. AI is changing the way technology services are delivered, and some of the routine programming and outsourcing work that Pakistan’s IT industry relies on could face serious pressure. At the same time, new opportunities are opening up in automation, data analytics, AI-based applications, and specialised software development. With freelancing and software consultancy accounting for more than half of ICT exports, adapting to these changes is becoming increasingly important.
The government, meanwhile, has set an ambitious target of USD10 billion in annual IT exports by FY29 under the Uraan Pakistan plan. It is a tall order, especially when global competition is increasing and AI is reshaping the industry.For now, the numbers are moving in the right direction, and the sector continues to surprise on the upside.
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