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.
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
This performance highlights the sector’s resilience amid short-term fluctuations, reflecting sustained global demand for Pakistan’s IT services.
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.
| 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 | – |
Analysts link the sector’s growth to multiple factors:
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.
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.
| 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.