Pakistan’s information technology sector recorded another milestone in fiscal year 2025-26, with exports of IT products and services rising to more than $4.5 billion as companies expanded into new international markets and demand for digital services remained strong.
The latest export figure marks a sharp increase from $3.475 billion in FY25, extending the sector’s uninterrupted growth throughout FY26. The performance reflects growing global demand for Pakistani technology services and the industry’s continued push to diversify beyond its traditional dependence on North American and European clients.
Government officials had projected earlier this year that IT exports would exceed the $4.5 billion mark, driven by higher software exports, rising freelance earnings, and growing international demand for Pakistani digital talent.
Asia-Pacific emerges as a key growth market
One of the biggest shifts during FY26 was the increasing expansion of Pakistani small and medium-sized businesses into Asia-Pacific markets, particularly Japan and Singapore. The move reduced the industry’s long-standing reliance on customers in the United States and Europe while opening new revenue opportunities across fast-growing digital economies.
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Beyond conventional software development, Pakistani firms also strengthened their presence in high-growth segments such as Business Process Outsourcing (BPO), Software-as-a-Service (SaaS) and gaming. Industry participants attribute this growth to Pakistan’s young workforce, competitive operating costs and an expanding pool of skilled technology professionals.
Earlier government data showed ICT export remittances reached $3.38 billion during the July to March period of FY26, up 19.7 percent from the same period a year earlier. Freelancer earnings also climbed significantly, highlighting the growing contribution of Pakistan’s digital workforce to foreign exchange inflows.
Payoneer highlights need for stronger payment infrastructure
Commenting on the sector’s performance, Nagesh Devata, Senior Vice President and Head of APAC at Payoneer, said the sustained growth reflected the industry’s ability to win clients across multiple regions.
“The sustained growth reflected continued global demand for Pakistan’s digital services and an increasing focus by the industry on developing diversified revenue streams across multiple international markets.”
He added: “Expanding into the Asia-Pacific region also required businesses to adapt to different local payment ecosystems, making reliable cross-border financial infrastructure increasingly important for exporters.”
According to the company, Payoneer is expanding support for Pakistani exporters by offering multi-currency payment capabilities that allow businesses to receive and manage payments in major international currencies, including the US dollar, euro, British pound, Canadian dollar, Australian dollar, Japanese yen and Singapore dollar.
Digital economy gains momentum
The strong export performance reinforces the IT sector’s role as one of Pakistan’s fastest-growing sources of foreign exchange earnings at a time when the country is seeking to strengthen exports and accelerate digital transformation.
The government has also introduced initiatives through the Pakistan Software Export Board (PSEB) to promote local technology companies, strengthen international partnerships and attract foreign investment. These efforts include showcasing Pakistan’s capabilities across more than 30 technology sectors and expanding business links with overseas markets, particularly in Asia.
With companies broadening their global footprint and new markets contributing to export growth, industry stakeholders expect Pakistan’s digital economy to remain one of the country’s strongest-performing sectors in the coming years.
