Pakistan’s information technology sector has achieved a major milestone, with IT exports surpassing the $4 billion mark for the first time during the first 11 months of fiscal year 2025-26.
According to data released by the State Bank of Pakistan, exports of IT and IT-enabled services, including earnings from IT companies and freelancers, reached $4.184 billion during July-May FY2025-26.
The figure represents a significant increase from $3.475 billion recorded during the same period last year, reflecting year-on-year growth of $709 million, or 20 percent.
The strong performance came despite challenges including internet disruptions and geopolitical uncertainties that affected business operations during the fiscal year.
Industry stakeholders credited the growth to export-friendly government policies, continued incentives for the technology sector, and ongoing efforts to promote Pakistan’s IT industry in international markets.
Government institutions have also supported the sector by facilitating foreign exchange inflows and encouraging foreign direct investment, helping maintain momentum in export growth.
On a monthly basis, IT export receipts stood at $373 million in May 2026, compared to $423 million in April 2026. With one month remaining in the fiscal year, total exports are projected to approach $4.5 billion.
While the figure would set a new record, it is expected to remain below the government’s annual target of $5 billion.
Looking ahead, the sector is expected to benefit from several relief measures announced in the federal budget. These include the extension of the reduced Final Tax Regime rate of 0.25 percent for another three years, a key demand of the IT industry.
Additionally, the withholding tax on international transactions made through payment cards has been reduced from 5 percent to 0.5 percent, a move expected to improve business operations and support export growth.
Industry experts believe these measures will enhance ease of doing business, attract greater foreign exchange inflows, and help accelerate the expansion of Pakistan’s technology exports in the years ahead.
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