Pakistan’s information technology industry has closed fiscal year 2025-26 on a record high, with Pakistan IT exports touching $4.6 billion — the highest annual figure the country’s IT industry has ever recorded, according to fresh data released by the Ministry of Information Technology and Telecom.
The milestone, reported by WE News English, is being held up as the clearest signal yet of Pakistan’s shift towards a knowledge-based, export-led economy. The sector’s exports rose 21 per cent compared with the previous year, while the trade surplus reached 85 per cent — a figure that shows how much of the sector’s earnings translate directly into foreign exchange for the country.
For a country that has long relied on textiles and remittances, the rise of Pakistan’s IT industry exports changes the economic story. The $4.6 billion figure is not just a record; it is proof that Pakistan software exports can compete on the world stage when policy, skills and market access line up together.
A record year for Pakistan’s IT industry
The ministry said the IT sector has become the country’s fastest-growing export sector, crediting the special focus of the Prime Minister, government patronage and industry-friendly policies for the turnaround. According to the official data, the 21 per cent growth was achieved despite a tough global environment for technology spending.
What makes the headline figure of Pakistan IT exports 4.6 billion so significant is the base it builds on. IT exports FY2025-26 were driven not by one or two large contracts, but by thousands of freelancers, software houses and IT-enabled service companies selling to clients across North America, Europe and the Gulf. That breadth of the export base is what gives policymakers confidence the growth can continue.
Industry watchers also point to the trade surplus figure of 85 per cent as the sector’s hidden strength. Unlike traditional industries that need imported raw materials, Pakistan software exports run almost entirely on talent — meaning nearly every dollar earned stays in the economy.
100,000 youth trained and 250 companies exhibited abroad
One of the engines behind the surge is human capital. The ministry said the government provided training in modern IT skills to more than 100,000 young Pakistanis during the last year, feeding a steady pipeline of developers, designers and digital marketers into the export market.
At the same time, the ministry organised participation in more than 20 international exhibitions around the world. Those shows gave over 250 Pakistani IT companies and startups the chance to introduce their products and services directly to global buyers — a step up from relying solely on freelance platforms and middlemen.
Representatives of the IT industry were also made part of the Prime Minister’s delegations during his foreign visits. The visits opened doors to new markets, investment opportunities and international business linkages that would be hard for individual companies to secure on their own, the ministry said.
Tax breaks and policy support behind the surge
The government backed the push with a series of incentives for IT exporters, including the continuation of the final tax regime and a 0.25 per cent tax facility on exports. Crucially, the preferential 0.25 per cent tax regime for IT and IT-enabled service exports has been extended until 2029, giving exporters a long planning horizon.
Finance Minister’s Advisor Khurram Schehzad said the sector’s growth reflected Pakistan’s expanding capabilities in technology, digital services and innovation. Rising global demand for IT-enabled services has strengthened the country’s position as a competitive technology destination, he said, describing the latest figures as another milestone for Pakistan’s digital economy.
Schehzad added that higher technology exports were generating foreign exchange earnings, creating high-value employment opportunities and attracting investment — all supporting the transition towards a more knowledge-based and export-oriented economy. He summed up the trend as “record, resilience and momentum”.
The Pakistan Software Export Board (PSEB) has played a supporting role, helping companies certify for foreign clients and navigate the documentation that international buyers demand.
What comes next: 5G, digital payments and a digital economy
The record IT exports FY2025-26 figure comes as Pakistan seeks to make information technology and IT-enabled services a key driver of export-led growth under its broader economic reform agenda. The government says the work does not stop at the record.
The initiatives on the table include promoting digital payments, expanding broadband connectivity and preparing for the commercial rollout of 5G services — steps designed to further increase foreign exchange earnings, attract investment and create high-skilled employment as the country pursues a more digital and knowledge-based economy.
The sector has been among the country’s strongest-performing export industries in recent years, and officials believe the combination of skills training, tax stability and global market access can push the number higher still. For the thousands of young Pakistanis entering the tech workforce, the $4.6 billion record is a sign that the industry’s best years may still be ahead.
Related on UrduPro: our earlier coverage of the sector’s momentum, including the nine-month tally of $3.39 billion and Q1 FY2027 figures, plus the original report on WE News English.
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