Pakistan’s information technology (IT) sector achieved a historic milestone in December 2025, with monthly exports reaching $437 million — a 26% increase compared to the same month last year.
For the first half of FY2025-26 (July–December), IT exports totaled $2.2 billion, marking a 20% year-on-year growth, underscoring the sector’s rising contribution to the country’s foreign exchange earnings.
According to Topline Research, the surge in December was driven by the expansion of Pakistan’s IT client base, particularly in the Gulf Cooperation Council (GCC) region. Analysts attribute part of this growth to policy measures by the State Bank of Pakistan (SBP), including the relaxation of the retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50%. This change has boosted confidence among IT exporters, encouraging repatriation of earnings rather than parking funds overseas.
Additionally, the government’s Equity Investment Abroad (EIA) scheme — allowing IT exporters to invest up to 50% of their foreign currency account proceeds in overseas entities — has further incentivized reinvestment of proceeds into Pakistan. As Sania Irfan of Topline Research notes, this initiative strengthens exporter confidence and supports sustainable sector growth.
The Pakistan Software Houses Association (P@SHA) reports that approximately 62% of IT companies maintain specialised foreign currency accounts, reflecting the sector’s growing integration with formal financial mechanisms.
Looking ahead, the government has set ambitious targets under the ‘Uraan Pakistan’ economic plan, aiming for $5 billion in IT exports for FY2025-26 and a long-term goal of $10 billion by FY2028-29. With strong demand from international markets and supportive regulatory measures, analysts remain optimistic about achieving these targets.
Review:
Pakistan’s IT sector continues to demonstrate resilience and strategic growth potential. Policy interventions such as increased repatriation limits and the EIA scheme have clearly contributed to exporter confidence, while the expansion of the client base in high-growth regions like the GCC highlights the sector’s global competitiveness. If this momentum is sustained and complemented by talent development and infrastructure support, Pakistan’s IT exports could become a major pillar of foreign exchange earnings in the coming years.
