By Farooq Awan

Pakistan’s information technology (IT) exports reached $2.6 billion during July-January FY26, registering a 19.8 percent increase compared to the corresponding period last year, according to the Monthly Economic Update & Outlook February 2026 released by the Ministry of Finance.

The growth in IT exports contributed to the overall performance of the services sector during the first seven months of the fiscal year. The report highlights that services exports recorded an upward trend, supported primarily by higher IT-related earnings. The increase of 19.8 percent reflects continued expansion in the country’s IT and IT-enabled services segment. The $2.6 billion export figure indicates sustained external demand for digital services, including software development, consultancy, and related technology services.

 The performance of IT exports stands out within the broader external sector, particularly at a time when merchandise trade faces pressures from rising imports. The growth in services exports provided partial support to the external balance during the review period.

The report notes that overall services exports improved during July-January FY26, with IT services forming a significant share of that growth. The rise in digital export earnings contributed to diversifying Pakistan’s export base beyond traditional goods sectors.

 The expansion in IT exports during the period also reflects continued activity in the country’s technology sector. The double-digit growth rate demonstrates momentum in the digital services segment as FY26 progresses.

While the trade deficit widened during July-January FY26 due to higher imports, the growth in IT exports contributed positively to the services account. The $2.6 billion in earnings during the seven-month period underscores the sector’s role in generating foreign exchange inflows. The data presented in the report show that IT exports maintained a steady upward trajectory during the current fiscal year. The nearly 20 percent increase over the same period last year highlights ongoing performance in the technology services domain.

Overall, the services export data, led by IT, reflect strengthening activity in Pakistan’s digital economy during FY26, contributing to the country’s external sector performance through higher technology-driven export earnings.

Credit: INP-WealthPk