IT exports poised to hit $5b mark

New momentum not an isolated spike but part of sustained upward trend

Pakistan's information technology sector is witnessing one of the most significant export surges in the country's economic history, positioning itself as a critical pillar of foreign exchange earnings and services-led growth. In December 2025, Pakistan's IT and IT-enabled services exports reached a record $437 million, marking the first time monthly receipts crossed the $400 million threshold.

According to data released by the State Bank of Pakistan (SBP), this figure represents an increase of around 23% on a month-on-month basis and approximately 26% year-on-year, underscoring the sector's accelerating momentum and growing competitiveness in global markets.

This milestone is not an isolated spike but part of a sustained upward trend that has been building over several years. Official SBP statistics show that cumulative IT exports during the first half of FY2025-26 (July-December) stood at about $2.24 billion, compared to roughly $1.87 billion in the same period of the previous fiscal year.

This translates into around 20% growth, indicating that the sector is firmly on track to achieve – and potentially surpass – the widely discussed $5 billion annual export target. The consistency of growth across multiple months reflects structural strengthening rather than short-term volatility.

A look at historical data highlights how far the sector has come. A decade ago, Pakistan's annual IT exports hovered around the $2 billion mark, with limited diversification and modest global visibility. By FY2024-25, IT and IT-enabled services exports had risen to $3.8 billion, according to SBP's annual balance of payments data, recording 18% year-on-year growth despite global economic uncertainty.

Monthly export figures have repeatedly set new records, moving from around $342 million in March 2025 to $386 million in October 2025, and now reaching $437 million by December. This rapid succession of highs within a single fiscal year signals a structural shift in Pakistan's export profile.

Several factors are driving this expansion, with policy reforms playing a central role. One of the most impactful measures has been the SBP's decision to enhance exporters' retention limits in Exporters' Specialised Foreign Currency Accounts (ESFCA) from 35% to 50%. This reform has allowed IT companies to retain a larger share of their foreign exchange earnings, improving cash flow, facil