Services sector leads where commodities lag behind.
Key Takeaways:
- Pakistan’s services exports grew 18.38 per cent to $6.46 billion in the first eight months of FY26, driven almost entirely by the IT sector, with telecommunications, computer and information services alone crossing $2.97 billion according to State Bank of Pakistan data.
- While the cumulative trend is positive, monthly exports have softened from a record $437 million in December 2025 to $365 million in February 2026, raising questions about whether the government’s $5 billion IT export target for the full fiscal year remains achievable.
- Pakistan’s services export momentum contrasts sharply with volatile goods exports and, if sustained through structural policy support, could meaningfully reduce the country’s chronic dependence on commodity-driven foreign exchange earnings.
Islamabad, Pakistan – While Pakistan’s commodity exports continue to disappoint with erratic monthly swings, there is one corner of the economy quietly doing its job. The services sector, led by information technology, has posted uninterrupted growth since the start of FY26, and the cumulative numbers are now substantial enough to demand serious attention from policymakers.
A news report published by Dawn confirmed that Pakistan’s services exports rose 18.38 per cent in the first eight months of the current fiscal year, reaching $6.46 billion compared to $5.46 billion in the same period last year, with the increase led by telecommunications, computer and information services throughout the period. That report draws on official data from the Pakistan Bureau of Statistics (PBS) and the State Bank of Pakistan (SBP).
Dawn had reported earlier in March that according to data compiled by the Pakistan Bureau of Statistics, the export of services reached $5.66 billion in July-January FY26, up from $4.76 billion a year earlier, with monthly year-on-year growth running at 18.27 per cent in July, 8.41 per cent in August, 14.85 per cent in September, 17.61 per cent in October, 22.26 per cent in November, 15.94 per cent in December, and 31.12 per cent in January.
Pakistan’s IT-led services exports have grown every single month since February 2024. That kind of consistency is rare in any sector of this economy, and it deserves to be treated as the strategic asset it is.
The IT Engine Driving the Numbers
The State Bank of Pakistan data, cited in the Dawn report, shows that exports of telecommunications, computer, and information services reached $2.97 billion during the eight months of FY26, compared with $2.48 billion a year earlier, marking a 19.75 per cent increase.
The Express Tribune highlighted the structural shift this represents, noting that Pakistan’s IT sector is witnessing one of the most significant export surges in the country’s economic history, with the record $437 million achieved in December 2025 reflecting a gradual shift from reliance on traditional, low-value exports towards a knowledge-based, services-driven growth model.
The rupee-denominated picture confirms the same trend. According to the PBS data cited in the Dawn report, services exports in rupee terms climbed 19.66 per cent to Rs1.818 trillion in the eight months of FY26, compared to Rs1.519 trillion in the corresponding period last year.
The Monthly Slowdown Worth Watching
Despite the strong cumulative picture, the monthly trajectory has weakened. The Daily CPEC reported that monthly exports dropped from $437 million in December 2025 to $374 million in January and slipped further to $365 million in February 2026, with analysts attributing this slowdown to the ongoing US-Israel conflict with Iran, which has affected the global economy and delayed expansion plans for many IT companies, also impacting Pakistan’s key export markets in the US and the Gulf region.
Geo.tv reported that while the government has set an ambitious FY26 target of $5 billion in IT exports, Topline Research expects actual export growth to range between 18 and 20 per cent, bringing total receipts for the fiscal year to around $4.5 billion, up from $3.8 billion in FY25.
Pakistan is ranked among the world’s top five freelancing markets. Yet the National Freelancing Policy has sat in draft form since 2023. That gap between ambition and execution is costing the country billions.
The Policy Gap That Could Cost Pakistan Dearly
The numbers are encouraging but the policy environment has not kept pace. TechJuice reported that Pakistan’s National Freelancing Policy, drafted in 2023 by the Ministry of Information Technology and Telecommunication, remains pending cabinet approval despite the country ranking among the world’s top five freelancing nations and generating record foreign exchange earnings, with freelance remittances surging to $779 million in FY25, a 90 per cent increase from the previous year.
Arab News reported that Pakistan is already ranked among the world’s top five freelancing markets, with more than 2.3 million active freelancers contributing to digital exports and employment, and that earnings could exceed $1 billion annually with stronger institutional support, better payment infrastructure, and expanded training programs. Arab News
The government’s own medium-term target is even more ambitious. Geo.tv reported that the government’s Uraan Pakistan agenda aims to push annual IT exports to $10 billion by FY29, which translates into a compound annual growth rate of approximately 27 per cent over three years, with analysts noting that achieving this goal will depend on sustained policy incentives, improved digital infrastructure, and enhanced collaboration between the public and private sectors.
The data suggests Pakistan has found something that works. Whether the government can protect and accelerate it through consistent policymaking is the more difficult question, and the answer will define whether this becomes a genuine economic transformation or another missed opportunity.
