Pakistan’s IT Exports Start FY27 with Strong Growth

Pakistan’s IT exports have carried their strong momentum into FY27, with export receipts reaching $417 million in July 2026, up 18% year-on-year and broadly in line with the $416 million recorded in June.

 

July’s figure was the second-highest monthly export level in the recent series, behind the $437 million recorded in December 2025.

 

The sector’s growth is becoming increasingly consistent rather than being driven by occasional monthly spikes. On a trailing 12-month basis, IT exports reached $4.66 billion, representing a 20% increase from $3.87 billion during the corresponding period last year.

 

The expansion is particularly important for Pakistan’s external account because IT and IT-enabled services generate relatively high net foreign exchange earnings compared with traditional merchandise exports, which often require significant imported inputs and energy.

 

Stronger ICT and business-services exports are also helping offset some of the pressure created by Pakistan’s widening goods trade deficit.

 

FY26 provided a strong foundation for the sector, with ICT export remittances reaching approximately $4.6 billion, up 20.6% from around $3.8 billion in FY25.

 

Policy measures have also supported the sector. IT exporters can retain up to 50% of export proceeds in foreign currency accounts, while banking procedures for export receipts and international payments have been simplified. Dedicated banking desks, streamlined documentation and faster processing through Exporters’ Special Foreign Currency Accounts have helped reduce some of the barriers faced by exporters and freelancers.

 

Pakistan has also set increasingly ambitious targets for IT and ICT exports. The Uraan Pakistan framework targets $10 billion in IT exports by FY29, while more recent government plans have outlined a broader $30 billion ICT export ambition. Separately, the IT ministry has set a $25 billion ICT target for 2030, including $15.3 billion from IT and IT-enabled services and $9.8 billion from telecommunications.

 

The country is also attracting greater interest from global technology companies. Google’s decision to establish its first local office in Pakistan in August 2026 is viewed as an important signal for the country’s digital economy. The company has also entered into initiatives focused on digital skills, artificial intelligence, innovation and export competitiveness, including Google Career Certificates and plans for an AI Center of Excellence in Islamabad.

 

However, achieving the government’s longer-term export ambitions will require Pakistan to move beyond low-value outsourcing and freelancer-driven growth.

 

The next phase is likely to depend on expanding higher-value segments such as software engineering, artificial intelligence, cloud computing, cybersecurity, gaming, technology products and scalable digital businesses.

 

July’s figures suggest that the strong growth recorded last year has continued into FY27. Maintaining annual growth near 20% appears achievable, but reaching the much larger export targets will depend on Pakistan’s ability to move up the technology value chain and generate higher-value digital services.