Pakistan IT exports rise nearly 20% to $2.61 billion in first seven months of fiscal year

In this photograph taken on May 24, 2019, People work at their stations at the National Incubation Centre (NIC), a start-up incubator, in Lahore. (AFP)
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Updated 18 February 2026
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Pakistan IT exports rise nearly 20% to $2.61 billion in first seven months of fiscal year

  • January ICT exports climb to $374 million year-on-year
  • Sector remains country’s top-earning services export

KARACHI: Pakistan’s information and communication technology (ICT) export earnings rose 19.78 percent year-on-year to $2.61 billion in the first seven months of the fiscal year ending June 2026, the IT ministry said on Tuesday, highlighting the sector’s growing role as a source of foreign exchange.

Pakistan’s IT and IT-enabled services sector has emerged as one of the country’s fastest-growing sources of foreign exchange, generating over $3 billion annually and employing roughly a million freelancers in addition to formal software firms.

Unlike traditional manufacturing exports, the industry relies primarily on remote digital labor, from software development to back-office services, making it resilient during economic crises but constrained by payment barriers, talent migration and infrastructure reliability challenges. However, IT services require minimal imports and benefit from a large pool of young workers and freelancers, making the sector central to government plans to boost dollar inflows and reduce pressure on the balance of payments.

“ICT export remittances surged 19.78 percent, reaching $ 2.61 billion during the first seven months of FY 2025-26 compared to $ 2.18 billion achieved during the corresponding period last year,” the IT ministry said in a statement.

Monthly exports also expanded, with ICT services exports reaching $374 million in January 2026, up 19.5 percent from $313 million a year earlier, according to the ministry’s data.

The ministry said ICT remained the country’s highest-earning services sector, well ahead of “other business services,” which generated $1.21 billion over the same July-January period.

Pakistan has increasingly relied on technology exports, including software development, outsourcing and freelance services, to generate foreign exchange as the economy adjusts under structural reforms and tight import controls following a balance-of-payments crisis.

Officials say continued growth will depend on easing payment bottlenecks, improving digital infrastructure and expanding higher-value technology services beyond traditional outsourcing.


Pakistan awaits mandate clarity before committing troops to Gaza stabilization force, FO says

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Pakistan awaits mandate clarity before committing troops to Gaza stabilization force, FO says

  • Foreign office says Islamabad cannot commit to contributing troops unless it obtains clarity on the force’s mandate
  • Says Pakistan can be part of peacekeeping force but not of any disarming or de-militarization mandates

ISLAMABAD: Foreign office spokesperson Tahir Andrabi said on Thursday that Pakistan has identified its “red lines” on contributing to the International Stabilization Force (ISF) in Gaza, adding that Islamabad would be unable to take a decision on the matter without clarity about the force’s mandate. 

Andrabi’s comments come as Prime Minister Shehbaz Sharif gears up to attend the inaugural Board of Peace meeting to be chaired by US President Donald Trump in Washington today, Thursday. 

Trump’s 20-point peace plan for Gaza calls for ‌a multi-nation force to oversee a ‌transition period for reconstruction and economic recovery in the Palestinian territory. Pakistan has previously said it is willing to contribute troops for the peace force but would not be part of any move to disarm Hamas. 

“On the international security assistance force, we understand that a decision is awaited on the contours of the mandate of the Board of Peace, on the mandate of the International Stabilization Force,” Andrabi said during a weekly briefing to reporters. 

“And till such time, we would obviously not be in a position to take any decision on this matter. We have identified our red lines quite explicitly.”

Andrabi quoted a previous statement of Deputy Prime Minister Ishaq Dar by saying: “Pakistan can be part of the peacekeeping mandate, but we would obviously not be part of any disarming, de-militarization mandates.”

He said discussion on the international force might take place in Washington today.

The foreign office spokesperson said Pakistan has joined the Board of Peace with a particular focus of aiding in the reconstruction of Gaza and for the long-term settlement of issues faced by Palestinians.

Andrabi said Israel’s recent move to register lands in the West Bank will also come up in the Board of Peace meeting today. 

“That is how Israel is violating international law, UN resolutions on wider occupied Palestinian territories, not just Gaza,” he said.

“So, I think the board of peace meeting affords an opportunity to discuss this important development.”

SAUDI MEDIATION FOR PAKISTANI DETAINEES
To a question about the release of three Pakistani detainees by Afghanistan this week on Saudi Arabia’s mediation, Andrabi welcomed the role played by the Kingdom and “other brotherly Muslim countries.”

 Afghanistan government spokesperson Zabihullah Mujahid announced on Tuesday that it had released three Pakistani soldiers captured during border clashes between the two countries in October after mediation from Saudi Arabia. Mujahid said the detainees were handed over to a visiting Saudi delegation in Kabul.

“Pakistan values the positive role of our brotherly countries, our important OIC Islamic countries, in basically messaging Taliban leadership, reminding them of their obligations under international law, to ensure that their territory is not used for terrorism in Pakistan,” the spokesperson said.

“I think such an exchange also took place between Riyadh and Kabul.”

However, he said Saudi Arabia was not part of any “structured mediation talks” between Pakistan and Afghanistan.

“I am not aware of that role and I would strongly urge you not to speculate into it,” he said. 

To a question about Pakistan’s response if India violates the Indus Waters Treaty, Andrabi said Islamabad will not compromise on its water rights.

“We will not let India weaponize water. We will not compromise on even a single drop of water that this treaty allows us to have a share of, and we will not compromise on the water rights of the people of Pakistan,” he added.