Pakistan’s IT Exports Jump 24% in July — Momentum That Could Redefine the Economy
Islamabad, August 19, 2025 – Pakistan’s IT and IT-enabled services (ITeS) exports are on fire. In July 2025 alone, the country clocked $354 million, marking a 24% year-on-year surge over July 2024’s $286 million, and a healthy 5% bump from June’s $339 million.
The numbers, revealed by the State Bank of Pakistan, signal a sector that’s not just growing—it’s rapidly becoming Pakistan’s most bankable engine for economic transformation.
A Look Back: The Fiscal Year Story
Zooming out, the fiscal year 2024–25 paints an equally encouraging picture:
- Total IT exports reached $3.81 billion, up nearly 18% year-on-year.
- But the performance still fell short of the government’s $4.2 billion target, leaving a gap of around $400 million.
- Still, industry insiders argue this shortfall reflects systemic challenges more than sector potential.
Now, the bar has been raised even higher: the government has fixed an ambitious $5 billion export target for FY 2025–26.
What’s Fuelling the Growth?
Several forces are driving this surge:
- Policy Incentives
- The government has allowed IT firms greater foreign currency retention, making it easier to reinvest earnings.
- New frameworks now support equity investment abroad, enabling Pakistani firms to expand operations internationally.
- Relief measures on repatriation, taxation tweaks, and soft-credit financing have further boosted confidence.
- Global Demand for Services
Pakistan’s outsourcing and freelancing talent continues to attract clients in North America, Europe, and the Middle East, particularly in software development, fintech, health tech, and AI-driven solutions. - Uraan Pakistan Digital Blueprint
Launched earlier this year, Uraan Pakistan is the government’s flagship digital transformation program. Beyond just exports, it ties IT growth to larger national ambitions—jobs, digital infrastructure, and positioning Pakistan as a top 10 global IT outsourcing hub within a decade.
The Roadblocks Still Standing
But it’s not all smooth sailing. For Pakistan’s IT rocketship to stay on course, it must overcome some persistent turbulence:
- Banking Bottlenecks: Freelancers and small firms continue to struggle with international payment systems, foreign exchange restrictions, and high banking fees.
- Taxation Uncertainty: Sudden policy shifts and inconsistent tax regimes have long discouraged long-term investment.
- Infrastructure Gaps: While Tier-1 cities thrive, secondary cities face unreliable internet, power outages, and limited training facilities.
- Brain Drain Pressure: A growing number of top engineers and tech specialists are migrating abroad, raising fears of a talent crunch back home.
Global Perspective
Pakistan’s IT sector isn’t just chasing domestic goals—it’s part of a global race:
- India currently exports over $200 billion worth of IT services annually, dwarfing Pakistan’s numbers.
- Bangladesh has surpassed $6 billion in IT exports and aggressively supports freelancers with incentives.
- For Pakistan, catching up means bridging structural gaps while playing to its strengths—youth talent, competitive pricing, and English-language proficiency.
What This Means for the Future
If Pakistan can sustain July’s momentum, the IT sector may finally shift from being a “promising outlier” to the backbone of the economy. Here’s what’s at stake:
- Employment Boom: The sector already employs over 600,000 professionals; sustained growth could double this within 5 years.
- Foreign Exchange Lifeline: At a time when traditional exports (textiles, agriculture) face volatility, IT services offer a more stable stream of inflows.
- Global Branding: A strong IT sector gives Pakistan credibility beyond textiles and remittances—putting it firmly on the digital map.
Buzz Pakistan Scoreboard
| Metric | July 2025 | YoY Growth | Context |
|---|---|---|---|
| IT & ITeS Exports | $354 million | +24% | Up from $286M in July 2024 |
| Month-on-Month Increase | +5% | — | From $339M in June 2025 |
| FY 2024–25 Total Exports | $3.81 billion | +18% | Short of $4.2B target |
| FY 2025–26 Government Target | $5 billion | — | Marks confidence in sector growth |
| Professionals in Sector | ~600,000+ | Growing | Strong freelancing & startup culture |
Final Word
July’s numbers show more than just growth—they reveal Pakistan’s emerging digital destiny. The sector has the talent, the demand, and now, with the right policies, the potential to catapult Pakistan into the global tech elite.
But the clock is ticking: without urgent reforms in taxation, banking, and infrastructure, the $5 billion target could remain out of reach.
For now though, the message is clear—Pakistan’s IT exports aren’t just rising, they’re rewriting the nation’s economic playbook.
