Pakistan targets $7.3bn in IT exports for 2026-27 with sweeping digital transformation push

Pakistan has set a target of $7.3 billion in IT and IT-enabled services exports for fiscal year 2026-27, alongside a wide-ranging digital transformation agenda covering artificial intelligence, 5G infrastructure, cybersecurity and e-governance, according to federal budget documents.

The government has identified the IT sector as a central pillar of growth under the URAAN Pakistan initiative. The PSDP allocation for IT and telecommunications has been set at Rs30 billion for the year.

What is Pakistan's plan to boost IT exports in 2026-27?

Pakistan aims to reach $7.3 billion in IT exports through a combination of infrastructure investment, skills development and digital governance reform. Key measures include the launch of a $1 billion National Artificial Intelligence Ecosystem Development Program, a 5G spectrum auction, national fiberization, and expanded e-government services. Officials say the goal is to position Pakistan as a regional digital hub.

The Islamabad IT Park is expected to become operational in FY2026-27, generating an estimated $60 million in annual IT exports and around 7,500 direct jobs. The government also plans to roll out 3,734 training programs under the Prime Minister's initiative, including certifications and boot camps, with a target of 25,000 employment outcomes through training and co-working space initiatives. The National Semiconductor Human Resource Development Program will also advance during the year.

What is the National AI Ecosystem Development Program?

The National Artificial Intelligence Ecosystem Development Program, known as NAIEDP, is a flagship $1 billion initiative designed to accelerate Pakistan's technological transformation and strengthen the digital economy. It forms part of the broader URAAN Pakistan vision, which targets $10 billion in annual IT exports and a longer-term goal of $15 billion by 2030. Budget documents describe it as central to the government's digital growth strategy.

On digital governance, authorities plan to fully operationalize the National Citizen Services Portal, or SuperApp, to deliver integrated public services. The National Data Exchange Layer will be expanded to at least five government institutions to improve inter-agency data sharing. These measures are designed to reduce bureaucratic friction and improve service delivery across federal departments.

What are Pakistan's plans for 5G and digital infrastructure?

The government plans to conduct a 5G spectrum auction and complete commercial rollout in provincial capitals within five to six months of the auction. In parallel, the National Fiberization Policy will be implemented to expand fiber-to-the-home connectivity and strengthen Pakistan's national telecom backbone. The Rs30 billion PSDP allocation for IT and telecoms carries an 80 percent utilization target, with projects set to be consolidated under the Pakistan Digital Authority once it becomes operational.

On cybersecurity, Phase I of the Cybersecurity for Digital Pakistan program will become fully operational during the year. This includes the establishment of digital forensic laboratories, integration of Security Operations Centers and Network Operations Centers, and the implementation of governance and risk frameworks.

How has Pakistan's IT sector performed so far?

ICT exports rose to $2.97 billion in FY2025-26, making IT and IT-enabled services Pakistan's largest services export sector. The sector's trade surplus reached $2.55 billion, contributing positively to the external account. Broadband subscriptions rose to 157 million, with penetration reaching 63 percent, while total telecom subscriptions approached 200 million and cellular coverage expanded to 91 percent of the population.

The Universal Service Fund deployed 1,121 kilometers of optical fiber during the year, extending connectivity to more than 525,000 people. Pakistan's satellite communications capacity increased to 10 Gbps and internet speeds reached up to 160 Mbps. On the cybersecurity front, Pakistan moved into Tier 1 of the Global Cybersecurity Index, ranking among the top 40 countries after previously sitting at 79th, while the National Cyber Emergency Response Team handled more than 900 incidents during the year.