Pakistan’s IT sector is officially in overdrive. December 2025 marked a historic milestone with $437 million in monthly exports a staggering 25% jump compared to the previous year. With the first half of FY26 already pulling in $2.2 billion, the country is witnessing a definitive shift toward a tech-driven economy.
What’s Fueling the Surge?
This growth is the result of a powerful combination of smart policy and private sector hustle. A primary driver is the State Bank of Pakistan's decision to relax retention limits in Exporters’ Specialised Foreign Currency Accounts (ESFCAs) from 35% to 50%. This allows tech firms and freelancers to keep more of their dollar earnings to fund global marketing, software subscriptions, and international expansion without traditional bureaucratic hurdles.
Furthermore, industry giants like Systems Limited are aggressively expanding their global footprint. With 87% of its revenue coming from abroad primarily the Middle East and North America Systems Limited is setting a blueprint for local firms to establish subsidiaries in markets like the UK. Alongside these giants, a growing "freelance army" is expected to contribute up to $1 billion by the end of this fiscal year, aided by increased IT literacy and better internet accessibility.
The Road to the 2029 Goal
Under the "Uraan Pakistan" plan, the government has set an ambitious target of $10 billion in IT exports by 2028-29. While reaching this goal in just three years is a steep challenge, the path forward requires moving beyond basic services.
To bridge the gap, Pakistan must diversify into lucrative but under-explored markets in Europe and the Asia-Pacific. This requires a shift toward high-value sectors like AI, automation, and smart systems. Additionally, the government must provide infrastructure incentives for smaller companies and explore hardware manufacturing partnerships potentially with China to build a more holistic tech ecosystem.
If these structural shifts are prioritized, the IT sector, which already accounts for 45% of total services exports, could become the definitive engine of Pakistan's economic stability.
