Pakistan’s technology sector has achieved a significant milestone with IT exports reaching a record $386 million in October 2025. Data from Arif Habib Limited and State Bank of Pakistan indicates this is the highest monthly figure ever recorded, reflecting continued growth and resilience in the country’s IT industry. This performance marks a 17 percent increase compared to the same month last year and a 5.5 percent rise from September 2025, pushing total IT exports for the first four months of fiscal year 2026 to $1.4 billion, up 20 percent from $1.2 billion during the same period in the previous year.
IT exports now account for 47 percent of Pakistan’s total service exports in October, maintaining the same share as last year. Industry observers attribute this growth to several factors, including increased engagement of Pakistani IT firms in MENAP (Middle East, North Africa, Afghanistan, and Pakistan) and European markets. Exporters have also benefited from the relative stability of the Pakistani rupee against the US dollar, which has encouraged the repatriation of a larger portion of their earnings. Analysts note that these conditions have provided companies with more predictable revenue streams, allowing for strategic reinvestment and expansion of operations.
Policy measures have further supported this growth. The Equity Investment Abroad facility now allows exporters to utilize up to 50 percent of foreign currency account proceeds to acquire stakes in overseas companies. This incentive has been complemented by SBP raising the retention limit in exporter Specialized Foreign Currency Accounts from 35 percent to 50 percent. These changes provide IT companies with greater flexibility to manage foreign currency earnings, while also encouraging reinvestment in the sector. A survey by Pakistan Software Houses Association (P@SHA) revealed that 62 percent of IT companies currently maintain specialized foreign currency accounts, demonstrating growing confidence in the sector’s capacity to handle export proceeds efficiently.
Looking ahead, industry experts expect these measures to continue bolstering IT exporters’ confidence and support further growth in the sector. The government has set an IT export target of $5 billion for fiscal year 2026, anticipating 18 percent year-on-year growth. Under the national economic plan Uraan Pakistan, authorities aim to achieve $10 billion in IT exports by fiscal year 2029. Analysts suggest that continued engagement in international markets, coupled with favorable policy frameworks and effective management of foreign currency earnings, will play a critical role in sustaining this growth trajectory and further establishing Pakistan as a competitive destination for IT services.
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