By Ayesha Saba

Pakistan’s information technology exports surged 17.8% year on year to $417 million in July 2026, the first month of FY2027, extending the technology sector’s export momentum after record earnings of around $4.6 billion in FY2026.

According to the Finance Division’s Monthly Economic Update & Outlook – August 2026, available with Wealth Pakistan, the technology sector is becoming an increasingly important source of export earnings and diversification for the country.

The Finance Division said continued investment by major global technology firms, progress in domestic technology manufacturing, policy support for IT exporters, digital payment reforms and the launch of 5G services are promoting the development of a stronger digital ecosystem.

These developments are also creating greater opportunities for skills development, technology services and higher value-added exports, potentially broadening the technology sector’s contribution to the economy beyond its existing export base.

The 17.8% year-on-year increase in July IT exports is particularly significant as it came immediately after the sector completed a record full fiscal year, suggesting that the momentum carried into the opening month of FY2027.

Technology exports are also becoming an important component of Pakistan’s broader external-sector performance. The country’s total exports of goods and services reached $3.94 billion in July 2026, compared with $3.48 billion in the same month last year.

The growing contribution of IT provides Pakistan with an additional source of foreign exchange alongside traditional merchandise exports and workers’ remittances, while also supporting diversification towards services and higher value-added economic activity.

The government’s focus on the technology sector extends beyond export facilitation. According to the Finance Division, progress in domestic technology manufacturing and reforms in digital payments is strengthening the wider digital ecosystem, while the rollout of 5G advances the emerging technology infrastructure.

The report places these developments within an improving macroeconomic environment as Pakistan enters FY2027 with stronger fiscal buffers, greater economic stability and improving growth prospects following sustained stabilisation efforts.

The Finance Division expects the economy’s recovery momentum to continue in the coming months, while stressing the importance of maintaining policy discipline and advancing structural reforms to sustain inclusive growth and preserve macroeconomic stability.

For the technology sector, the combination of record FY2026 export earnings and a further 17.8% increase in July provides an encouraging start to FY2027, with digital services increasingly diversifying Pakistan’s exports and boosting foreign exchange earnings.

Credit: INP-WealthPk