Web Desk: Pakistan’s IT exports surged to a record level in December, underscoring the sector’s growing role as a key driver of foreign exchange earnings and economic resilience.
IT and IT-enabled services exports reached USD 437 million in December 2025, crossing the USD 400 million mark for the first time. The figure represents a 23% increase from November’s USD 356 million and a 26% rise from USD 348 million recorded in December a year earlier, reflecting both strong monthly momentum and sustained annual growth.
The latest data reinforces a broader upward trend that policymakers and industry leaders have highlighted as critical for stabilising Pakistan’s external accounts amid broader economic challenges.
During the first half of fiscal year 2026, information and communication technology exports totaled USD 2.24 billion, up 20% year on year. IT has emerged as the largest and most consistent contributor within Pakistan’s services exports and is generating the biggest trade surplus among services segments, according to official data.
Over the past decade, Pakistan’s IT and IT-enabled services sector has steadily expanded into one of the country’s fastest-growing export industries. Annual IT exports reached an estimated USD 3.5–3.8 billion in fiscal year 2024–25, accounting for nearly half of total services exports and marking a structural shift in the composition of Pakistan’s external earnings.
Software and computer services dominate Pakistan’s IT export mix, including custom software development, enterprise solutions, application design and IT consultancy. At the same time, IT-enabled services such as business process outsourcing, call centers and data management continue to contribute significantly.
In parallel, a rapidly growing freelance and remote work economy has added hundreds of millions of dollars in export receipts through global digital platforms, broadening the sector’s base beyond traditional software houses.
Pakistan’s IT services now reach clients in more than 170 countries. The United States remains the largest market, followed by the United Kingdom, Gulf Cooperation Council states and a range of European and Asia-Pacific economies. Major urban centers including Lahore, Karachi and Islamabad anchor the industry, hosting a mix of large multinational firms, mid-sized exporters, startups and independent professionals.
Several factors continue to fuel the sector’s rise. Competitive labor costs, a large English-speaking talent pool, supportive central bank policies and the global shift toward outsourcing and digital transformation have strengthened Pakistan’s position in international technology markets.
However, challenges persist. Industry players cite infrastructure gaps, internet reliability concerns, skills shortages in advanced technologies and difficulties in scaling firms to compete for large enterprise contracts. Addressing these constraints remains critical to sustaining growth.
National strategies aim to lift annual IT exports toward USD 10 billion within the next few years. Continued investment in skills development, regulatory stability, digital infrastructure, and higher-value segments such as cloud computing, artificial intelligence, fintech and cybersecurity is expected to further cement the sector’s role as a cornerstone of Pakistan’s export economy.
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