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Pakistan’s IT exports rise 18% to $3.8 Billion in FY25, hits record high

Government incentives, growing global demand and digital reforms boost sector’s share in total exports to 9.4%

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Haris Zamir

Business Editor

Experience of almost 33 years where started the journey of financial journalism from Business Recorder in 1992. From 2006 onwards attached with Television Media worked at Sun Tv, Dawn Tv, Geo Tv and Dunya Tv. During the period also worked as a stringer for Bloomberg for seven years and Dow Jones for five years. Also wrote articles for several highly acclaimed periodicals like the Newsline, Pakistan Gulf Economist and Money Matters (The News publications)

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Pakistan’s IT exports rise 18% to $3.8 Billion in FY25, hits record high

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Pakistan’s information technology exports rose 18% year over year, reaching $3.8 billion in fiscal year 2024-25, according to newly released government data. The figure marks a significant milestone in the country’s efforts to expand its digital economy and reduce dependence on traditional exports.

IT exports accounted for an average 9.4% of total exports in FY2025—an increase of 1.1 percentage points from the previous year—highlighting the sector’s growing contribution to foreign exchange earnings.

Over the past decade, Pakistan has worked to reposition its economy through digital transformation, aiming to shift from commodity-based exports to value-added services. The IT and IT-enabled services (ITES) sector—including software development, business process outsourcing, freelancing and fintech—has emerged as a key driver of export growth amid rising global demand for cost-efficient tech services.

Pakistan’s young, tech-savvy workforce, competitive labor costs and increasing internet access have helped position the country as an emerging outsourcing destination. However, challenges such as limited cross-border payment solutions, inconsistent tax policy and underdeveloped infrastructure have long constrained growth—until now.

The federal budget for FY2024-25 introduced several targeted measures to boost IT exports and promote digital entrepreneurship. Key initiatives include:

  • Income tax relief for freelancers and small IT exporters, exempting those under a certain income threshold from advance and withholding taxes.
  • Export repatriation incentives, offering reduced tax rates to companies that bring back at least 80% of their export earnings through official banking channels.
  • Digital skills development, with increased government funding for training in software engineering, AI and data science under the Ministry of IT and Telecom.
  • Special Technology Zones (STZs) in Islamabad, Lahore and Karachi, offering tax holidays and subsidized infrastructure for startups and exporters.


These reforms are part of the government’s broader “Digital Pakistan” strategy, which aims to raise IT exports to $15 billion by 2030.

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