Pakistan’s information technology sector is witnessing one of the strongest export expansions in the country’s economic history, reinforcing its position as a leading source of foreign exchange and services-led growth. In December 2025, IT and IT enabled services exports reached a record $437 million, marking the first time monthly receipts crossed the $400 million threshold. According to data released by State Bank of Pakistan, the figure reflects an increase of approximately 23 percent month on month and 26 percent year on year, underscoring sustained demand for Pakistani digital services in global markets.
The December milestone forms part of a broader upward trajectory rather than a one off surge. Official SBP statistics show cumulative IT exports during the first half of FY2025 26, covering July to December, stood at around $2.24 billion compared to $1.87 billion in the same period of the previous fiscal year, representing roughly 20 percent growth. Monthly exports have consistently set new highs, rising from about $342 million in March 2025 to $386 million in October and now $437 million in December. For context, annual IT exports hovered near $2 billion a decade ago, while FY2024 25 closed at $3.8 billion, reflecting 18 percent year on year growth despite global economic uncertainty. The steady climb suggests structural strengthening in Pakistan’s export profile and places the sector firmly on course to approach or potentially exceed the widely discussed $5 billion annual target for FY26.
Policy reforms have played a central role in supporting this expansion. SBP enhanced exporters’ retention limits in Exporters’ Specialised Foreign Currency Accounts from 35 percent to 50 percent, allowing IT firms to retain a greater share of foreign earnings to improve liquidity and reinvest in growth. The introduction of the Equity Investment Abroad framework further enabled exporters to deploy retained foreign currency into overseas subsidiaries and partnerships, expanding client access and strengthening international presence. At the same time, global demand for outsourced software development, cloud services, cybersecurity, and digital transformation projects has favored cost competitive and skilled markets such as Pakistan. Companies have diversified beyond North America and Europe into Gulf Cooperation Council countries, Southeast Asia, and parts of Africa, supported by participation in international technology exhibitions and trade forums.
Freelancers and small and medium sized enterprises have emerged as significant contributors to export inflows. Industry and SBP estimates indicate freelancers account for a notable share of IT receipts, particularly in software development, digital marketing, data analytics, and online consulting. Some estimates suggest freelance driven inflows could approach $800 million to $1 billion annually if current trends continue, aided by greater formalisation of earnings through banking channels and digital payment solutions. IT exports now account for more than 40 percent of Pakistan’s total services exports, providing a relatively resilient source of dollar inflows at a time of recurring balance of payments pressures. While infrastructure gaps, skills development needs, and regulatory consistency remain important challenges, maintaining monthly exports in the $400 to $450 million range would place the $5 billion milestone within reach for FY26 and further strengthen Pakistan’s shift toward a knowledge based, services driven growth model.
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