Pakistan’s IT Exports Jump 18% to $417m in July, but Reliance on Low-Value Work Clouds the Path to $10bn

Pakistan's technology exporters have opened the new fiscal year on a strong note. Exports of telecommunications, computer and information services rose by around 18% year-on-year to $417m in July 2026, up from $354m a year earlier, according to data released by the State Bank of Pakistan (SBP) on Tuesday. Yet industry figures warn that much of the work remains low-value, and that far more ambitious growth will be needed to reach a government target of $10bn by 2028-29.

The July increase of $63m adds to an impressive record. In the 2025-26 fiscal year, technology-related exports climbed to $4.6bn from $3.814bn the year before, growth of roughly 21%. The sector remained the single largest contributor to Pakistan's services exports.

Total services exports reached $10.02bn in 2025-26, compared with $8.45bn in 2024-25. Within that figure, transport services earned $916m, travel $1.116bn and other business services $2.155bn, all outpaced by digital work.

The momentum carried into July. Overall services exports rose by about 27% to $927m, from $728m in the same month of 2025. Technology and digital services, the data suggest, are emerging as a key source of foreign exchange despite wider pressures on the external account.

The government has tried to nurture the sector by expanding broadband, promoting freelancing and software services, and easing conditions for technology firms. It has also extended a concessionary 0.25% tax rate for registered IT companies and freelancers.

Firms have been hunting for new customers abroad. Pakistani IT companies have taken part in major international technology fairs and, with official backing, in trade shows and exhibitions in Europe and America.

Noman Said, chief executive of SI Global Solutions, expects growth to accelerate thanks to consistent government policies. He described the $10bn target under the Uraan programme as ambitious but achievable, provided stakeholders adopt an aggressive export strategy.

"Capacity building of human capital is the need of the hour," Dr Said argued, urging the industry to address its local weaknesses while winning new clients and expanding into existing markets.

Others are more pointed about the sector's shortcomings. Saad Shah, chief executive of Hexalyze, said Pakistani companies and freelancers are still largely engaged in low-value, traditional assignments. He urged exporters to pursue high-value projects in cyber-security, machine learning, AI-driven automation and enterprise solutions.

Collaboration, in Mr Shah's view, is the route upward. Securing large projects through partnerships with local and international firms, he said, could substantially strengthen capabilities and lift export earnings.

Freelancers form a growing part of the picture. Ibrahim Amin, chairman of the Pakistan Freelancers Association, said the number of freelancers and digital workers is rising as awareness of global work trends spreads. He called for national recognition of their foreign-exchange contribution to encourage students to see freelancing as a viable career.

Mr Amin also pressed for practical support. He urged the government to create a fund and tax incentives to help freelancers become entrepreneurs and set up small companies that could create jobs at home. The July figures offer an encouraging start. But with exports at $4.6bn last year, more than doubling them in three years will require the sector to climb the value chain, not merely to add volume.