Pakistan’s information technology exports crossed the $4 billion mark for the first time during the first 11 months of the current fiscal year, reflecting sustained momentum in the sector’s contribution to the national economy despite a range of operational headwinds over the course of the year.
According to data released by the State Bank of Pakistan, exports of information technology and information technology-enabled services, which includes export receipts generated by both registered companies and individual freelancers, reached $4.184 billion during the July to May period of fiscal year 2025-26, compared to $3.475 billion recorded over the same period in the previous fiscal year. This represents a year-on-year increase of $709 million, or roughly 20 percent, a growth rate achieved despite challenges including internet disruptions and geopolitical uncertainty that affected business operations at various points during the year.
Industry stakeholders have attributed the sustained growth in information technology exports to export-friendly government policies and the continuity of incentive structures that have given exporters a measure of predictability in planning their operations. The government and relevant institutions have continued promoting Pakistan’s information technology industry through international marketing initiatives, while working to facilitate foreign exchange inflows and attract foreign direct investment into the sector. On a monthly basis, information technology export receipts stood at $373 million in May 2026, a decline from the $423 million recorded in April 2026, illustrating the month-to-month variability that continues to characterise the sector’s export performance even as the overall annual trend remains positive.
With one month remaining in the fiscal year, total information technology exports are projected to close near $4.5 billion, falling short of the government’s annual target of $5 billion. Looking ahead, the sector is positioned to benefit from several relief measures included in the recently announced federal budget, most notably the extension of the reduced 0.25 percent Final Tax Regime rate for an additional three years, a measure that had been a long-standing demand of the information technology industry. The budget has also reduced the withholding tax applied to international transactions made through payment cards from 5 percent to 0.5 percent. Industry experts believe these measures will improve the ease of doing business for technology exporters, encourage greater foreign exchange inflows, and support continued growth in Pakistan’s information technology export performance over the coming fiscal year.
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