KARACHI/LAHORE: Information technology (IT) exports reached an all-time monthly high of $437 million in December 2025, rising 26 per cent year-on-year (YoY) and 23 per cent month on month (MoM), according to data released on Monday.
The figure is well above the previous 12-month monthly average of $341 million and reflects a seasonal trend of stronger IT export inflows towards the end of the calendar year.The strong December performance lifted Pakistan’s IT exports to $2.2 billion in the first half of FY26, marking a 20 per cent increase compared with the same period last year. Average daily export proceeds rose to $19.9 million in December from $17.8 million in November, indicating improved inflows from overseas clients.
Sania Irfan, analyst at Topline Research, said the YoY growth was driven by several structural and policy-related factors. “IT exporters have expanded their global client base, particularly in the Gulf Cooperation Council region, while regulatory changes by the State Bank of Pakistan have also played a key role,” she said.
She pointed to the central bank’s decision to increase the permissible retention limit in the Exporters’ Specialised Foreign Currency Accounts from 35 per cent to 50 per cent. “The ability to retain a higher portion of export proceeds, along with the allowance of equity investment abroad through these accounts, has improved confidence among exporters,” Sania Irfan said. She added that relative stability in the rupee had encouraged IT firms to repatriate a larger share of their earnings.
A recent survey by the Pakistan Software Houses Association showed that 62 per cent of IT companies are now maintaining specialised foreign currency accounts. She said this trend was likely to continue, particularly after the introduction of the Equity Investment Abroad framework, which allows exporters to invest up to 50 per cent of retained proceeds in overseas entities.
Net IT exports, calculated after adjusting for imports, stood at $377 million in December, up 70 per cent YoY and 22 per cent MoM. This figure was also higher than the 12-month average of $298 million, underscoring the sector’s growing contribution to the external account.
While the government has set an IT export target of $5 billion for FY26, Topline Research expects exports to grow by 18-20 per cent during the year, reaching around $4.5 billion, compared with $3.8 billion in FY25.
Under the government’s Uraan Pakistan economic plan, the longer-term target is $10 billion in IT exports by FY29, implying a compound annual growth rate of 27 per cent over the next three years.
