Business Recorder
Pakistan’s IT exports are offering a rare, good story. At a time when the external account remains under pressure, the technology sector is bringing in steady foreign exchange. In April 2026, IT and IT-enabled services exports stood at USD423 million, up 33 percent year-on-year from USD317 million in April 2025 and around 2 percent higher than March 2026. This was the second consecutive month above USD400 million and the second-highest monthly number on record, after December 2025’s USD437 million. The bigger story is the cumulative trend. In 10MFY26, Pakistan’s technology exports reached around USD3.81 billion, compared to roughly USD3.14 billion in the same period last year, showing growth of about 21 percent. In an economy struggling with energy imports, debt repayments and weak investment inflows, this matters. Every dollar earned through exports reduces the need to borrow, roll over debt, or depend on temporary external support. The sector has come a long way. SBP-based data shows that ICT exports have risen from around USD1.1 billion in 10MFY20 to nearly USD3.8 billion in 10MFY26. Their share in total services exports has also increased sharply. IT is no longer a side story in the country’s export mix; it is becoming one of the country’s more serious foreign exchange earners. This is important because Pakistan’s export base has remained too narrow for too long. Textiles still dominate, followed by rice and a few other low-complexity goods. The monthly trend also shows that FY26 has gained momentum. After a record high in December and some moderation in early 2026, IT exports crossed USD400 million again in March and April. This suggests the sector has moved into a higher monthly range, rather than relying on one-off spikes. Net IT exports are also encouraging. Exports minus imports stood at USD355 million in April, up 23 percent year-on-year. This is important because gross export numbers can sometimes overstate the real contribution if import payments are also rising. The good news should not lead to complacency. The government has set a USD5 billion IT export target for FY26, but analysts expect the year to close closer to USD4.5 billion to USD4.6 billion. Under the Uraan Pakistan plan, the government wants IT exports to reach USD10 billion by FY29. Meeting that target will require not just higher numbers, but more transparent and sustainable growth. The numbers are encouraging, but they are not beyond question. Part of the recent rise may reflect better repatriation of dollars after SBP’s facilitation measures, while some industry voices suspect tax arbitrage and re-routing through IT entities. That does not make the sector’s growth fake, but it does mean Pakistan needs cleaner data: how much is corporate software exports, how much is freelancing, and how much is simply income finding the lowest-tax route home.
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