Pakistan’s IT and IT-enabled services exports surged to an all-time high of $366 million in September 2025, reflecting strong momentum in the sector. This marks a 25 percent year-on-year and 9 percent month-on-month increase, making it the highest monthly export figure recorded to date.
The growth pushed 1QFY26 exports to $1.06 billion, representing a 21 percent year-on-year increase. In FY25, the IT sector had emerged as the country’s third-largest source of foreign exchange, following the textile and rice sectors.
The surge in exports was a major factor behind Pakistan posting a current account surplus of $110 million in September 2025, the first surplus of FY26 as the IT sector cushioned the external account at a time when merchandise trade remains under pressure. Net IT exports — exports minus imports — reached $330 million in September, up by 29 percent year-on-year and 8 percent month-on-month.
The ICT sector remains Pakistan’s top-performing services sector, contributing the largest trade surplus within services. In 1QFY26, ICT exports accounted for 48 percent of total services exports. Over the past six years, ICT exports have risen from $300 million in 1QFY20 to more than $1.1 billion in 1QFY26.
Policy support has played a critical role in driving this performance. The State Bank of Pakistan’s decision to increase the permissible retention limit in exporters specialized foreign currency accounts from 35 percent to 50 percent allowed firms to retain more of their earnings abroad while maintaining flexibility in cash flows.
The allowance for equity investment abroad through these accounts has enabled exporters to expand their global footprint without relying on domestic reserves. At the same time, exchange rate stability has incentivized repatriation of profits. Majority of the IT firms now maintain specialized foreign currency accounts, highlighting a structural shift in how exporters manage and repatriate earnings.
On the demand side, Pakistani IT companies have expanded their client base in the GCC region, particularly in Saudi Arabia and the UAE, diversifying away from traditional North American and European markets.
Market expect FY26 exports to grow by 18 to 20 percent, supported by stable macroeconomic conditions, policy continuity, and sector expansion. Going forward, the government has set an FY26 target of $5 billion in IT exports and a more ambitious $10 billion target by FY29 under the Uraan Pakistan economic plan.
Achieving this will not only require sustained double-digit growth but also sectoral deepening. Despite robust growth, Pakistan’s IT sector remains structurally shallow, relying heavily on freelancers and small agencies. Without scaling larger firms and investing in R&D, it risks being locked in the low-value tier of the global digital economy.
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