Pakistan IT exports cross $4 billion for the first time as the sector grows 20% year-on-year despite internet disruptions and global uncertainty
Pakistan’s technology sector has reached a historic landmark. IT and IT-enabled services exports crossed the $4 billion mark for the first time during the first 11 months of the current fiscal year. The achievement signals the sector’s growing role as a reliable pillar of Pakistan’s national economy.
According to State Bank of Pakistan data, IT exports reached $4.184 billion during July-May FY2025-26. That compares to $3.475 billion in the same period last year. The year-on-year increase stands at $709 million, representing 20 percent growth. Moreover, this came despite real headwinds — including internet disruptions and geopolitical uncertainties that affected business operations throughout the year.
Pakistan IT exports crossing $4 billion reflects the combined contribution of IT companies and freelancers operating across the country. Industry stakeholders credit export-friendly government policies, continuity of incentives, and sustained institutional support for driving this momentum. Furthermore, international marketing initiatives and efforts to attract foreign direct investment have helped Pakistan’s IT industry build a stronger global profile.
On a monthly basis, IT export receipts stood at $373 million in May 2026. That is down from $423 million in April 2026. Still, with one month remaining in the fiscal year, total exports are expected to close near $4.5 billion. However, that would fall short of the government’s annual target of $5 billion.
The sector is also set to benefit from several measures announced in the federal budget. The reduced Final Tax Regime rate of 0.25 percent will continue for another three years. This extension addresses a long-standing demand from the IT industry. Additionally, the withholding tax on international transactions through payment cards has dropped from 5 percent to 0.5 percent. Together, these measures reduce the cost of doing business and improve cash flow for exporters.
Industry experts believe the budget relief will encourage greater foreign exchange inflows and accelerate growth further in the coming years. Therefore, the $5 billion annual target — missed this year — remains a realistic goal for the near future.
For a sector that has grown steadily despite infrastructure challenges and an uncertain global environment, crossing $4 billion is more than a number. It is proof that Pakistan’s digital economy has genuine depth and momentum behind it.
