Business Recorder
Pakistan’s IT exports are quietly becoming an important support line for the economy. In a year when the goods trade picture has remained fragile and pressure on the external account has not fully eased, the digital services sector is growing steadily and bringing in much-needed foreign exchange. In Mar-26 alone, Pakistan’s IT exports rose to USD413 million, up 21 percent year-on-year and 13 percent over Feb-26. It was the second-highest monthly inflow on record and only the second time the country crossed the USD400 million mark in a single month. Over 9MFY26, IT exports reached around USD3.38 billion, showing 20 percent growth over the same period last year. This performance reflects continued global demand for IT services and improving sector capability, though sustaining this pace will depend on diversification of markets and the ability to navigate external uncertainties. These numbers matter even more because of what is happening around them. Pakistan’s broader trade position remains under strain. Merchandise exports have not shown the momentum needed to materially improve the external picture, while import pressures remain real. Even when the current account posted a surplus in March, the relief did not come from a sharp turnaround in goods exports. It came largely from remittances and services. Services exports continue to outperform, rising 17 percent in 9MFY26 to USD7.35 billion, driven by a structural shift away from transport and travel toward higher-value segments such as IT and Other Business Services (OBS). OBS rose 28 percent year-on-year in 9MFY26 and now accounts for more than one-fifth of total services exports, highlighting the growing role of professional and knowledge-based services in the external account. This shift improves export resilience and supports foreign-exchange stability, although its durability will depend on continued investment in skills, regulatory clarity, and digital infrastructure. The government has set an ambitious FY26 IT export target of USD5 billion, but most analysts expect a more realistic outcome of around USD4.5 billion, implying 18–20 percent growth over FY25 exports of USD3.8 billion. The gap reflects persistent structural constraints, including weak internet infrastructure, regulatory bottlenecks, and the difficulties freelancers still face in bringing earnings through formal channels. The longer-term goal is more ambitious still. Under Uraan Pakistan, the target is to raise IT exports to USD10 billion by FY29, which would require annual growth of roughly 27 percent. Achieving that would significantly reshape Pakistan’s export mix and strengthen its position as a technology exporter.
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