Pakistan IT Exports Surge to $691 Million in Jul-Aug 2025

Pakistan’s IT exports reached $691 million in the first two months of the fiscal year 2025-26, showing an impressive 18% growth compared to the same period last year, according to fresh data from the State Bank of Pakistan (SBP).

Exports increased by $107 million during July and August, rising from $584 million in the same period of the previous fiscal year. This performance highlights the resilience and growing strength of the country’s digital economy despite global uncertainties.

In August 2025, Pakistan earned $337 million from IT services, a 13% year-on-year increase compared to August 2024. However, exports in August fell by 5% compared to July 2025, showing slight volatility in monthly receipts.

The IT sector accounted for 50% of total services exports during the month, underlining its position as one of Pakistan’s strongest contributors to foreign exchange earnings.

The Ministry of IT and Telecommunication (MoITT) has been actively working with the Pakistan Software Houses Association (P@SHA) to promote the industry on a global scale. This includes:

• Increased participation in major tech trade fairs and exhibitions.

• Roadshows in top markets, including the US, UK, Europe, and GCC countries.

• Collaboration with private companies to showcase Pakistan’s talent and IT capabilities.

These initiatives have allowed Pakistani firms to expand into both traditional and emerging markets, strengthening the country’s digital footprint worldwide.

Analysts credit the export surge to incentives and financial measures introduced by the SBP and MoITT. These include:

• Tax breaks for IT exporters.

• Simplified remittance channels for freelancers and tech companies.

• Efforts to provide foreign exchange retention facilities for IT exporters.

• Easier access to financing for startups and SMEs in the technology sector.

Such measures have made Pakistan’s IT services more competitive globally and encouraged companies to channel foreign revenues through formal banking systems.

Senior Vice Chairman of P@SHA, Muhammad Umair Nizam, praised the efforts of IT exporters, emphasizing their role in strengthening Pakistan’s economy.

“Pakistan’s IT exporters are not only boosting the industry’s income but also contributing to the stability of the country’s current account. With continued support from the government and financial institutions, the sector has the potential to exceed expectations,” Nizam said.

He further urged the government to maintain long-term supportive policies to sustain momentum and achieve strategic growth targets.

Analysts estimate that monthly export receipts need to average between $400 million and $450 million for Pakistan to hit its annual export target of $5 billion.

While the August figure of $337 million falls slightly short of this benchmark, industry experts believe that with seasonal improvements and strong demand from international markets, the target remains achievable in the coming months.

The growing adoption of IT outsourcing, remote work, and global digital transformation is expected to continue fueling Pakistan’s export potential.

Despite the positive outlook, several challenges remain:

• Inconsistent government policies: Frequent regulatory changes often create uncertainty for exporters.

• Infrastructure issues: Internet connectivity and electricity shortages remain obstacles in some areas.

• Freelancer difficulties: Delays in payment processing and a lack of banking support for freelancers affect inflows.

• Global competition: Countries like India, Bangladesh, and Vietnam are also expanding aggressively in the IT export market.

Experts stress that addressing these issues promptly is crucial to ensuring the sector’s sustainable growth.

Over the past decade, Pakistan’s IT industry has become one of the fastest-growing sectors in the country. Freelancers, software houses, and IT service providers have leveraged Pakistan’s youthful talent pool and relatively lower labor costs to compete globally.

Key drivers of this transformation include:

• A large base of freelancers and remote workers, placing Pakistan among the top five freelance markets worldwide.

• Growth in software development, BPO (business process outsourcing), fintech, and e-commerce services.

• Increasing global recognition of Pakistani startups and tech entrepreneurs.

Pakistani IT exporters have been focusing heavily on expanding into North America and Europe. However, the Gulf Cooperation Council (GCC) has also emerged as a key market, particularly in fintech, cloud services, and enterprise solutions.

This diversification helps reduce dependence on any single market and ensures stability in foreign earnings.

The surge in Pakistan’s IT exports to $691 million in the first two months of FY2025-26 reflects the sector’s resilience and growth potential. With strong support from the government, industry players, and favorable global demand, Pakistan is well-positioned to achieve its ambitious $5 billion annual target.

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