Pakistan's IT exports rise 17% YoY to record USD 394 million in August

Pakistan's IT exports rose 17% year-on-year to USD 394 million in August, despite declining 6% from the previous month, as the country's technology services sector continued its upward growth trajectory, according to industry data.

The August export figure was the highest ever recorded for the month, while the month-on-month decline reflected a high base effect after July posted Pakistan's second-highest monthly IT export figure, analysts said.

The August figure was also above the FY26 monthly average of USD 383 million. IT exports averaged USD 401 million over the past six months and USD 389 million over the past 12 months.

Growth driven by global expansion

Analysts attributed the continued year-on-year growth in IT exports to increased client engagement and the expanding global penetration of Pakistani IT exporters, particularly in the Gulf Cooperation Council (GCC) region.

Positive regulatory changes introduced by the State Bank of Pakistan, including higher permissible limits for exporters' Special Foreign Currency Accounts, have also supported the sector, analysts said. They added that stability in the Pakistani rupee has encouraged IT companies to remit a higher portion of their export proceeds back to Pakistan.

Net IT exports, after accounting for imports related to the sector, increased 16% year-on-year to USD 336 million in August.

IT share of exports rises

IT exports accounted for 11.8% of Pakistan's total exports of goods and services in August, up from 10.6% in the same month last year and 10.6% in July.

However, IT exports as a share of Pakistan's services exports stood at 45.2% in August, compared with 49.8% a year earlier and 44.4% in July. The figures highlight the growing contribution of technology services to Pakistan's external earnings, even as the sector's share of overall services exports fluctuates from month to month.

Industry targets higher exports

The Ministry of Information Technology and Telecommunication has set a target of USD 25.1 billion in IT exports by fiscal year 2030, including USD 15.3 billion from IT services.

The IT industry, meanwhile, expects exports to grow by 15% to 20% in fiscal 2027, potentially reaching USD 5.3 billion to USD 5.5 billion.

The sustained year-on-year increase in monthly IT exports, coupled with higher net export receipts, points to continued expansion of Pakistan's technology services sector as companies seek to increase their presence in international markets.