IT exports hit record $4.6b

Freelancers contribute 25% as digital services become largest export earner

KARACHI:

Pakistan's information technology (IT) exports climbed to a record $4.600 billion in fiscal year 2025-26, extending the sector's strong growth trajectory and reinforcing its position as the country's largest services export.

According to the State Bank of Pakistan's (SBP) Balance of Payments data released on Friday, exports under the "Telecommunications, Computer and Information Services" category rose 21% from $3.814 billion in FY25.

The sector finished the fiscal year on a strong footing, with exports reaching $416 million in June, the highest monthly earnings of FY26. The figure was up 22.7% from $339 million in June last year and 11.5% higher than the $373 million recorded in May.

The latest data also showed the sector gathering pace during the final quarter. IT exports rose to $1.212 billion during April-June FY26 from $1.152 billion in the preceding quarter and $1.179 billion in the corresponding quarter of last year, indicating sustained overseas demand for Pakistani digital services.

The SBP data underscores the IT sector's growing importance within Pakistan's external sector. Telecommunications, computer and information services generated almost 46% of the country's total services exports of $10.034 billion in FY26, remaining by far the largest contributor among all services categories. By comparison, other business services earned $2.154 billion, transport services $933 million and travel services $1.115 billion during the year.

The record performance was driven by software, IT-enabled services, business process outsourcing, telecommunications, information services, cloud computing, AI, cybersecurity, digital consulting, call centres and a rapidly expanding freelance ecosystem.

Industry experts described the record export earnings as both a watershed moment and a reminder of Pakistan's untapped potential. They said sustained investment in digital skills, AI, infrastructure and the country's growing freelance workforce could transform IT into one of the country's largest and most sustainable export sectors.

Dr Noman Ahmed Said, CEO of SI Global Solutions, said the record $4.6 billion in IT exports was encouraging but represented only a fraction of Pakistan's potential. He said the country's young population remained its biggest competitive advantage and that investing in digital and AI skills, reliable infrastructure, easier access to international payment channels and a supportive business environment could help Pakistan move from exporting cost-competitive IT services to high-value digital solutions.

He added that AI should be viewed as a productivity multiplier, noting that Pakistan's demographic advantage is supported by UNFPA and UNDP data, while SBP figures and the Pakistan Economic Survey reflect the IT sector's sustained export momentum.

The latest figures come as Pakistan seeks to diversify its export base beyond traditional sectors such as textiles and agriculture. Unlike merchandise exports, digital services require relatively low capital investment while generating high value-added foreign exchange earnings, making the IT sector an increasingly important pillar of the country's export strategy.

Pakistan's demographic profile provides further growth potential. With nearly two-thirds of the population under 30 and thousands of IT graduates entering the workforce every year, the country has a large pipeline of technology talent. Combined with competitive operating costs, expanding internet penetration and one of the world's largest freelance communities, analysts believe Pakistan has the ingredients to further increase its share in the global digital services market.

Freelancers have become an increasingly important pillar of Pakistan's digital exports, enabling the country to earn foreign exchange beyond conventional corporate channels. Thousands of Pakistani professionals provide software development, mobile app development, graphic design, digital marketing, artificial intelligence, content writing and other technology services to clients worldwide through online platforms. The industry's growing freelance ecosystem has not only expanded Pakistan's global digital footprint but has also created employment opportunities for young professionals and startups, helping broaden the country's export base.

Kapeel Kumar, founder of Founder's Space and a corporate consultant, described the record $4.6 billion in IT exports as a watershed moment, saying it signalled Pakistan's transition towards a more resilient and globally competitive digital economy. He said the country's freelance sector had emerged as a key growth driver, with more than 2.37 million registered freelancers making Pakistan the world's fourth-largest freelance market.

Freelancer export earnings surpassed $1 billion for the first time in FY26, surging 50% year-on-year and contributing around 25% of total IT exports. He added that many freelancers were evolving into micro-agencies and technology startups by leveraging AI and targeting higher-value international contracts. However, sustaining the momentum would require reliable internet infrastructure, 5G rollout and continued policy support for exporters.

They cautioned that sustaining export growth hinges on policy stability, digital skills, reliable internet and seamless international payment channels.