ISLAMABAD: Pakistan’s technology sector achieved a historic milestone as IT exports reached a record $386 million in October 2025. The figure marked the highest monthly performance ever recorded by the sector. Data from Arif Habib Limited and the State Bank of Pakistan confirmed the achievement. The surge highlighted growing momentum in Pakistan’s expanding technology landscape.
IT exports posted a 17% year-on-year increase during the month. They also recorded a 5.5% rise compared to September 2025. As a result, total IT exports for the first four months of FY26 reached $1.4 billion. The figure rose from $1.2 billion during the same period last year, reflecting a strong growth of 20%.
Exports Strengthen Share in Services Sector
IT exports accounted for 47% of Pakistan’s total service exports in October 2025. The share remained consistent with the previous year and underscored the sector’s crucial economic role. The rise in export earnings occurred amid broader optimism within Pakistan’s technology ecosystem.
Industry analysts linked the surge to several contributing factors. Pakistani IT companies expanded their presence in the MENAP and European markets. Moreover, relative stability in the rupee encouraged exporters to repatriate larger profit shares. Arif Habib Limited noted that currency stability played a vital role in sustaining confidence among exporters.
Policy Measures Support Ongoing Growth
Policy reforms also strengthened the sector’s performance. The Equity Investment Abroad facility allowed exporters to use up to 50% of their foreign currency proceeds for overseas investments. The measure improved overall repatriation of earnings and encouraged companies to scale their global footprint.
Additionally, the State Bank increased the retention limit in specialized foreign currency accounts from 35% to 50%. The move enabled IT companies to retain more foreign currency earnings and expand operations with greater flexibility. A survey by the Pakistan Software Houses Association reported that 62% of companies now maintain such accounts. The association said the trend reflected rising confidence in financial management options available to exporters.
Government Sets Ambitious Targets for Coming Years
Industry experts expect policy incentives to boost the sector further in the coming months. They believe the Equity Investment Abroad facility will continue strengthening exporters’ confidence. The government has set a $5 billion IT export target for FY26. Officials are aiming for 18% growth to meet the target.
Under the national development plan titled Uraan Pakistan, the government aims to push IT exports to $10 billion by FY29. Sector leaders say sustained policy support and global market expansion will remain essential for reaching these goals.
