Pakistan’s IT Sector Records Strong Growth Despite Seasonal Dip

Pakistan’s information technology exports have surged by 20% year-on-year, reaching $2.6 billion in the first seven months of FY26. This impressive growth underscores the sector’s rising importance as a driver of foreign exchange earnings and digital transformation.

In January 2026 alone, IT exports stood at $374 million, marking a 19% increase compared to the same month last year. However, receipts slipped 14% month-on-month from December, reflecting seasonal variations and delayed payments from certain foreign markets.

Net IT exports, which account for imports deducted from total exports, reached $314 million in January—a 12% year-on-year increase. This highlights the sector’s growing contribution to Pakistan’s external accounts and its resilience in the face of global market fluctuations.

The government has set an ambitious target of $5 billion in IT exports for FY26. Analysts, however, expect actual receipts to hover around $4.5 billion, still a significant improvement from $3.8 billion in FY25.

Looking ahead, the government’s medium-term agenda, Uraan Pakistan, aims to push annual IT exports to $10 billion by FY29. Achieving this goal will require sustained policy support, improved digital infrastructure, and stronger collaboration between public and private stakeholders.

Industry experts believe Pakistan’s competitive edge in software development, freelancing, and digital services will continue to fuel growth. With global demand for IT solutions expanding, the country is well-positioned to strengthen its role in the international technology market.

This performance reflects both the opportunities and challenges ahead, as Pakistan’s IT sector strives to maintain momentum and achieve long-term sustainability.