Pakistan’s IT sector crossed a significant milestone in the first half of FY26, underscoring its growing importance in the country’s export landscape and external account. With record monthly exports in December 2025 and sustained double-digit growth in 1HFY26, the sector is increasingly transitioning from episodic expansion to a more structural growth trajectory.
According to the State Bank of Pakistan, Pakistan’s IT exports reached $2.23 billion in 1HFY26, marking a 19.5 percent year-on-year increase and the highest-ever six-month performance recorded by the sector.
READ MORE: IT exports hit all-time high of $386m
The momentum culminated in December 2025, when monthly IT exports surged to $437 million, the highest on record, reflecting around 25.6 percent growth.
This performance is not merely a cyclical year-end spike. Rather, it reflects a deeper transformation in Pakistan’s digital economy, driven by regulatory reforms, market diversification, and rising global demand for technology services.
A key inflection point has been the State Bank of Pakistan’s decision to raise the permissible retention limit in exporters specialized foreign currency accounts from 35 percent to 50 percent. This policy shift has eased liquidity constraints for IT firms, enabling them to invest in cloud infrastructure, digital tools, marketing, and overseas expansion without undermining repatriation incentives.
The introduction of the Equity Investment Abroad (EIA) facility has further strengthened confidence, allowing exporters to invest abroad using export proceeds and establish regional offices. Together, these reforms have addressed a long-standing structural constraint: the trade-off between global expansion and domestic repatriation.
Beyond monetary and regulatory reforms, consistent government incentives, and participation in international technology exhibitions—such as GITEX, LEAP, Singapore FinTech Festival, etc.—have improved the global visibility of Pakistani IT firms and facilitated client acquisition in new markets.
Another important trend is the gradual diversification of Pakistan’s IT export markets, particularly toward the GCC region. This shift reduces dependence on traditional markets and enhances resilience against demand fluctuations in a few geographies.
At the same time, Pakistani IT firms are increasingly moving up the value chain, expanding into emerging technology domains such as artificial intelligence, machine learning, cybersecurity, e-governance, and game development. This transition from low-value outsourcing to higher-value digital services is critical for sustaining long-term export growth and improving Pakistan’s positioning in the global digital economy – a key lesson for other export sectors too! Freelancers have also emerged as a key pillar of the sector, with the market projecting their contribution to reach a billion dollar by FY26.
Projections for FY26 IT exports range between $4.0–4.5 billion, compared to $3.8 billion in FY25, implying annual growth of around 18–20 percent. The record performance of December 2025 and the milestone achieved in 1HFY26 suggest that Pakistan’s IT sector is no longer merely an emerging industry but an increasingly strategic component of the country’s export ecosystem.