Digital Economy Emerges as Key Foreign Exchange Earner with $2.4 Billion Trade Surplus
Key Takeaways:
1. Pakistan’s IT exports grew by 23.7% to $2.825 billion in the first nine months of FY2025, generating a $2.4 billion trade surplus.
2. Freelancers contributed $400 million to foreign exchange earnings, highlighting the growing importance of Pakistan’s digital gig economy.
3. Government initiatives including e-Rozgaar centers and National Incubation Centers are creating thousands of jobs and supporting digital entrepreneurship across the country.
Islamabad, Pakistan – Pakistan’s information technology sector has emerged as a standout performer in the national economy, recording an impressive 23.7% growth in exports during the first nine months of fiscal year 2025. According to the Pakistan Economic Survey 2024-25, ICT services exports reached $2.825 billion during July-March, generating a trade surplus of $2.4 billion – the highest among all service industries in the country.
The sector’s robust performance comes at a critical time for Pakistan’s economy, providing much-needed foreign exchange and demonstrating the potential of digital services as a sustainable growth driver. Freelancers have made a significant contribution to this success, bringing in $400 million to the national exchequer and highlighting the expanding role of Pakistan’s digital workforce in the global gig economy.
March 2025 saw ICT exports reach $342 million, representing a 12.1% increase from February’s $305 million and an 11.7% year-on-year growth compared to March 2024, indicating the sector’s sustained momentum.
The government is actively supporting this growth trajectory through strategic initiatives aimed at expanding digital infrastructure and fostering entrepreneurship. The Pakistan Software Export Board (PSEB) has launched an ambitious plan to establish 250 e-Rozgaar centers by FY2027, with 50 centers expected to be operational by the end of the current fiscal year. These centers aim to create 20,000 jobs and provide crucial support for freelancers and startups.
National Incubation Centers (NICs) have already incubated over 1,900 startups, with 960 successfully graduating from these programs. These ventures have created more than 185,000 jobs, attracted Rs30.8 billion in investments, and generated combined revenues of Rs27.3 billion. Notably, over 12,000 women entrepreneurs have benefited from these initiatives, underscoring the sector’s contribution to inclusive economic growth.
The telecom sector has also shown strong performance, generating Rs803 billion in revenues during July-March FY2025 and contributing Rs271 billion to the national treasury through taxes and duties. With total subscriptions reaching 199.9 million, Pakistan’s teledensity now stands at 81.3%.
International collaboration is further strengthening the IT sector’s foundations, with initiatives like the Joint Working Group with China focusing on ICT infrastructure development, cybersecurity enhancement, innovation promotion, and regulatory framework improvements.
