Pakistan’s information technology exports crossed the $4 billion mark for the first time in the first 11 months of the current fiscal year, underlining the sector’s growing contribution to the economy despite operational challenges during the year.

According to data released by the State Bank of Pakistan, exports of IT and IT-enabled services, including receipts generated by IT firms and freelancers, stood at $4.184 billion during July-May FY2025-26, compared to $3.475bn in the same period last year.

This translates into an increase of $709 million, or 20 per cent, year-on-year.

The rise came despite internet disruptions and geopolitical uncertainty, which affected business activity during parts of the year.

Industry stakeholders attributed the growth to export-friendly government policies, continuity of incentives and ongoing institutional support for the sector. They said official efforts to promote Pakistan’s IT industry in international markets, facilitate foreign exchange inflows and attract foreign direct investment had also helped sustain momentum.

On a monthly basis, IT export receipts fell to $373 million in May 2026 from $423m in April 2026.

With one month still remaining in the fiscal year, total IT exports are expected to close near $4.5bn, below the government’s annual target of $5bn.

The sector is also expected to benefit from a number of relief measures announced in the federal budget. These include the extension of the reduced Final Tax Regime rate of 0.25pc for another three years, a key demand of the IT industry.

In addition, the withholding tax on international transactions made through payment cards has been reduced from 5pc to 0.5pc.

Industry experts say these measures could improve the ease of doing business, encourage higher foreign exchange inflows and support further growth in Pakistan’s IT exports in the coming years.