Pakistan’s information technology (IT) sector just hit a major milestone.
According to fresh data released on Monday, IT exports climbed to a record $386 million in October 2025, marking a 17% year-on-year (YoY) jump and 5% month-on-month (MoM) increase. This figure also beat the 12-month average of $332 million, continuing a five month streak of YoY growth since June 2025.
With this strong momentum, IT exports for the first four months of FY26 have now reached $1.4 billion, showcasing a solid 20% YoY expansion. Daily export proceeds in October stood at $16.78 million, slightly above September’s $16.64 million another indicator of steady performance.
Why IT Exports Are Rising
The impressive growth didn’t happen by chance. Key factors driving the surge include:
1. Expanding Global Client Base Especially in the GCC
Pakistan’s IT firms have accelerated their outreach, tapping into high demand markets in Saudi Arabia, UAE, Qatar, and other GCC states.
2. SBP’s Supportive Policies
The State Bank of Pakistan (SBP) has played a major role by:
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Increasing the retention limit in Exporters’ Specialised Foreign Currency Accounts from 35% to 50%
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Allowing equity investment abroad (EIA) directly through these accounts
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Maintaining a stable rupee, encouraging exporters to bring back more earnings
These steps strengthened exporters’ confidence and improved inflows.
3. Healthy Exporter Sentiment
A recent survey by the Pakistan Software Houses Association (PASHA) revealed that 62% of IT companies are actively using specialised foreign currency accounts showing industry readiness to scale globally.
Topline Research’s Sania Irfan noted,
“SBP’s Equity Investment Abroad (EIA) initiative allowing IT exporters to invest in overseas entities using up to 50% of their specialised account proceeds will continue boosting confidence and remittances into Pakistan.”
Net IT Exports Also Rise
Net IT exports (exports minus imports) reached $335 million in October, rising:
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12% YoY
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2% MoM
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Higher than the 12-month average of $292 million
What’s the Outlook for FY26?
The government has set an ambitious $5 billion IT export target for FY26.
However, according to Topline Research, exports are expected to grow 18-20%, reaching around $4.5 billion still a strong performance if achieved.
