Pakistan’s Information Technology (IT) and telecommunications sector achieved a historic milestone in December 2025, recording $437 million in export remittances, marking a 23% increase compared to $356- 366 million in November, according to data from the State Bank of Pakistan (SBP). The performance underscores the sector’s role as a resilient engine for economic growth and foreign exchange earnings. Record-Breaking Monthly Performance IT and telecom exports, covering software development, IT-enabled services, and telecom solutions, showed a year-on-year rise of over 25%, compared to $348 million in December 2024. Key highlights Month-on-Month Growth: Up 23% from $366 million in November 2025. Year-on-Year Growth: Over 25% compared to December 2024. Historical Peak: Surpassing the previous monthly high of $386 million in October 2025. This performance highlights the sector’s resilience amid short-term fluctuations, reflecting sustained global demand for Pakistan’s IT services. Mid-Year Review (July- November FY26) For the first half of FY26 (July–November), cumulative IT and telecom exports reached $2.236 billion, a 19% increase over $1.866 billion during the same period last year. IT exports now account for over 10.8% of Pakistan’s total exports, the highest share ever recorded, signaling the growing weight of digital services in the national economy. IT Export Performance Comparison (Million US$) Period Export Value Growth (YoY) December 2025 $437 25% November 2025 $366 22–23% December 2024 $348 - Jul–Nov FY26 (H1) $2,236 19% Jul–Nov FY25 (H1) $1,866 - Drivers of Growth and Market Expansion Analysts link the sector’s growth to multiple factors: Global Outsourcing Demand: Rising international demand for software, IT-enabled services, and telecom solutions. Digital Infrastructure: Improved IT frameworks and connectivity support scale-up of exports. Freelancers and Software Companies: Higher participation by freelancers and export-focused software firms. Policy Support: Government initiatives and incentives for IT service exports have strengthened the sector’s competitiveness. Ibrahim Amin, Chairman of the Pakistan Freelancers Association (PAFLA), emphasized that freelancers are increasingly pivotal in remittance inflows, expanding the contributor base to the national economy. Economic Overview Despite the IT sector’s record growth, Pakistan faced broader macroeconomic challenges. In December 2025, the current account recorded a deficit of $244 million, reversing a $98 million surplus in November. The shortfall was largely driven by high imports, which reached $5.737 billion in December. IT Summary Balance of Payments- December 2025 (Million US$) Item Nov FY26 (Revised) Dec FY26 (Provisional) Current Account Balance $98 -$244 Exports of Goods (FOB) $2,277 $2,751 Imports of Goods (FOB) $4,716 $5,737 Exports of Services $806 $936 IT Services Export (part of above) $366–437 $437 IT exports contributed nearly 47% of total service exports in December, underscoring the sector’s critical role in stabilizing Pakistan’s external account. The sector’s record-breaking performance illustrates a structural shift in Pakistan’s export economy, where digital services are emerging as a stabilizing force amid trade imbalances. Expanding into new markets, bolstering freelancers and software companies, and continued policy support could cement IT exports as a core pillar of growth and foreign exchange earnings.