Pakistan’s technology sector has achieved a historic milestone, with IT exports reaching an all-time high of $386 million in October 2025.
This marks the highest monthly figure ever recorded, according to data compiled by Arif Habib Limited and the State Bank of Pakistan (SBP).
This marks a 17% year-on-year increase and a 5.5% rise compared to the previous month, pushing total IT exports for the first four months of FY26 to $1.4 billion-up 20% from $1.2 billion during the same period last year.
IT exports now account for 47% of Pakistan’s total service exports for October, maintaining the same share as the previous year.
The surge is attributed to several key factors, including the growing involvement of Pakistani IT firms in the MENAP (Middle East, North Africa, Afghanistan, and Pakistan) and European regions, as well as the relative stability of the Pakistani rupee against the US dollar, which has encouraged exporters to repatriate a larger portion of their profits, according to Arif Habib Ltd.
Policy measures have also played a significant role. The introduction of the Equity Investment Abroad (EIA) facility allows exporters to use up to 50% of their foreign currency account proceeds to acquire stakes in overseas entities, further incentivizing the repatriation of profits.
Additionally, the SBP raised the allowable retention limit in exporter Specialized Foreign Currency Accounts from 35% to 50%, enabling IT companies to expand their operations and retain more earnings in foreign currency.
A recent survey by the Pakistan Software Houses Association (P@SHA) found that 62% of IT companies currently maintain specialized foreign currency accounts, reflecting growing confidence in the sector’s ability to manage and repatriate export proceeds.
Looking ahead, industry experts expect SBP’s initiatives, including the EIA facility, to continue boosting IT exporters’ confidence. The government has set an ambitious IT export target of $5 billion for FY26, anticipating 18% growth during the year. Under the national economic plan ‘Uraan Pakistan,’ the government aims to achieve $10 billion in IT exports by FY29.
