Pakistan’s IT Exports Cross $4.6 Billion, Marking a Record-Breaking Year

Pakistan’s IT Exports Cross $4.6 Billion, Marking a Record-Breaking Year
Pakistan’s technology sector just delivered one of its strongest performances yet, with IT exports hitting a record $4.6 billion for the fiscal year 2025-26, according to the latest official figures. That’s a solid 21 percent jump from the $3.8 billion recorded the previous year, and it puts the sector firmly on an upward trajectory that policymakers and industry watchers have been hoping to see for some time.
A Strong Finish to the Year
The momentum wasn’t just a year-long trend; it carried right through to the final month. June alone brought in $416 million in IT exports, up 23 percent compared to the same month last year and 12 percent higher than May. That kind of month-on-month acceleration heading into the close of the fiscal year suggests the sector isn’t just growing steadily; it’s actually picking up speed.
According to brokerage firm Topline Securities, this performance means the government has successfully hit the $4.5 billion target it had set for the outgoing fiscal year, and then some. Coming in above target is a notable achievement, particularly for a sector that’s been positioned as one of Pakistan’s brightest hopes for diversifying its export base beyond traditional sectors like textiles.
Big Ambitions Ahead
The government isn’t stopping at this milestone. Under the Uraan Pakistan national economic plan, officials have set their sights considerably higher, aiming for IT exports to reach $10 billion by fiscal year 2029. That’s more than double the current figure, and reaching it would represent a major structural shift in how Pakistan’s economy generates foreign exchange earnings.
Whether that target is realistic will depend heavily on sustaining the kind of growth rate the sector has shown this year. A 21 percent annual increase is impressive, but scaling from $4.6 billion to $10 billion within roughly three more fiscal years will require the momentum to not just continue, but likely accelerate further, alongside continued investment in digital infrastructure, skilled talent, and a favourable policy environment for tech exporters.
What’s Driving the Growth
According to BMA Research, a significant part of this year’s export growth can be traced to Pakistani IT firms expanding more aggressively into new markets, particularly across the MENAP region (Middle East, North Africa, Afghanistan and Pakistan) as well as Europe. This kind of geographic diversification matters because it reduces the sector’s historical reliance on a narrower set of client markets, making Pakistan’s tech exports somewhat more resilient to demand fluctuations in any single region.
This expansion strategy also reflects a broader shift happening within Pakistan’s IT industry more generally, moving beyond just being a backend service provider for Western clients and increasingly positioning itself as a competitive, cost-effective tech partner for a wider range of global markets. As more local firms build relationships in the Gulf, North Africa, and European markets, the sector’s revenue base becomes less concentrated and, in theory, more sustainable over the long run.
A Different Story for Mobile Manufacturing
While software and IT services exports have been surging, the picture looks quite different for another part of Pakistan’s tech landscape: local mobile phone assembly. Domestic assemblers produced 1.93 million units in June, a decline of 12 percent compared to the same month last year and down 4 percent from May.
The broader trend for the first half of the calendar year tells a similar story. According to data released by the Pakistan Telecommunication Authority, local mobile phone assembly dropped by 8 percent over the January-to-June period, falling to 13.10 million units from 14.24 million units during the same period last year.
This slowdown has also affected how much of Pakistan’s mobile phone demand is being met domestically. In June, local manufacturing covered 75 percent of the country’s mobile phone demand, a noticeable drop from 86 percent in May. Looking at the full six-month period, local production met about 85 percent of demand overall, according to the brokerage house’s analysis.
Two Sectors, Two Different Trajectories
Taken together, these two data points paint an interesting contrast within Pakistan’s broader technology landscape. On one hand, the IT services and software export sector is thriving, buoyed by expanding international demand and a push into new regional markets. On the other, the hardware manufacturing side, specifically mobile phone assembly, appears to be facing headwinds, with production slipping both month-on-month and year-on-year.
The reasons behind the assembly slowdown weren’t detailed in the available data, though such declines are often tied to factors like fluctuating import costs for components, shifts in consumer demand, exchange rate pressures, or changes in government policy around local manufacturing incentives. Whatever the specific drivers, the divergence between software exports and hardware assembly suggests that Pakistan’s broader tech economy is not moving as a single, unified trend; different segments are clearly responding to different sets of pressures and opportunities.
Looking Forward
For now, the record-breaking IT export figure stands out as a genuine bright spot in Pakistan’s economic performance for the year, offering a tangible sign that the country’s push to build a stronger digital economy is gaining real traction. If the government’s $10 billion target for 2029 is going to be within reach, sustaining this year’s growth pace, while also finding ways to support other parts of the tech ecosystem like local manufacturing, will likely be key to keeping the broader sector moving in the right direction.