Pakistan’s IT exports have crossed 4 billion dollars for the first time in a single fiscal year, with the government now targeting 15 billion dollars by 2030 backed by fresh tax incentives for the sector.
A Record-Breaking Fiscal Year
Pakistan’s IT and IT-enabled services exports reached 4.184 billion dollars during FY2025-26, surpassing the entire 3.8 billion dollar total recorded in the previous fiscal year within just 10 months. Monthly exports have stayed above 400 million dollars for several consecutive months, including 423 million dollars in April alone, a 33 percent jump year-on-year.
What Is Driving the Growth
Industry leaders point to rising global demand for Pakistani software development, cloud solutions, business process outsourcing, and freelancing services. Computer services alone account for more than 80 percent of the country’s ICT export earnings, with software houses and roughly one million freelancers contributing to the surge.
New Tax Incentives for the Sector
Pakistan’s FY2026 budget extended the 0.25 percent final tax rate on IT export earnings through June 2029 and cut advance tax on foreign payments from 5 percent to 0.5 percent. Industry leaders say this combination removes much of the uncertainty exporters previously faced around tax planning.
The Road to a 15 Billion Dollar Target
The government has set a 15 billion dollar IT export target for 2030, implying roughly 25 percent compound annual growth from the current base. Analysts say achieving this will require moving beyond basic outsourcing into higher-value areas like artificial intelligence, cybersecurity, and cloud computing.
Frequently Asked Questions
How much did Pakistan earn in IT exports this fiscal year?
Pakistan’s IT exports reached 4.184 billion dollars in FY2025-26, the first time crossing the 4 billion dollar mark.
What is Pakistan’s IT export target for 2030?
The government has set a target of 15 billion dollars in annual IT exports by 2030.
What tax changes were made to support the IT sector?
The 0.25 percent final tax rate was extended through 2029, and advance tax on foreign payments was cut from 5 percent to 0.5 percent.
