Pakistan IT exports rise 13% year-on-year in May despite Eid-related slowdown

Pakistan's IT exports rose 13% year-on-year in May 2026 to $373 million, even as monthly inflows fell due to reduced working days during the Eid holiday period, according to industry data and analyst estimates.

Cumulative exports for the first 11 months of fiscal year 2025–26 reached $4.2 billion, up 20% to 21% on the same period last year.

What drove Pakistan's IT export growth in May 2026?

Pakistan's IT exports reached $373 million in May, supported by rising global demand for Pakistani technology services, an expanding international client base, and the sector's competitive cost structure.

On a month-on-month basis, exports fell 12% from April's $423 million, a decline analysts attributed to reduced business activity during the extended Eid holiday break.

How are Pakistan's IT exports tracking against the full-year target?

The $4.2 billion cumulative total for July 2025 to May 2026 puts the sector firmly on course to meet the government's full-year target of $4.5 billion, which implies annual growth of roughly 18%.

Analysts expect June exports to surpass $400 million, which would be sufficient to comfortably reach that figure. Net IT exports, defined as export earnings minus import costs, reached $314 million in May, a 7% increase year-on-year.

What is Pakistan's long-term IT export target?

The government has set a target of $10 billion in annual IT exports by fiscal year 2029 under its "Uraan Pakistan" economic framework. Achieving that figure would require compound annual growth of around 27% over the next three years.

Industry executives said ongoing regional geopolitical tensions were expected to have limited impact on earnings, citing the sector's diversified international exposure.

What tax support has the government extended to the IT sector?

The federal government recently extended the sector's preferential 0.25% Final Tax Regime on export earnings for a further three years through June 2029.

Industry stakeholders welcomed the move as supportive of investment and continued export expansion. The extension forms part of broader government efforts to position IT as a key driver of export-led economic growth.