By Abdul Ghani

Pakistan's information and communication technology (ICT) export remittances increased by 19.7% to $3.38 billion in FY2025-26, highlighting the sector's growing role as a major source of foreign exchange earnings and one of the country's fastest-growing export industries, according to the Pakistan Economic Survey 2025-26 released by the Ministry of Finance.

The survey shows that ICT export remittances reached $3.38 billion during the fiscal year under review compared with $2.83 billion in the corresponding period of the previous year. The growth comes at a time when Pakistan is pursuing a broader strategy to build a digitally enabled, innovation-driven and knowledge-based economy.

According to the survey, the information technology and telecommunication sector continued to strengthen its contribution to economic growth through expansion in exports, digital infrastructure, innovation, human capital development and technology adoption.

The survey notes that Pakistan's technology sector remained resilient despite challenging global economic conditions, geopolitical uncertainties and disruptions in international trade. Strong export growth reflects rising international demand for Pakistani software services, IT-enabled services and digital solutions.

A key contributor to the sector's performance was the country's rapidly expanding freelance economy. Tech freelancer exports surged by 51% to $856.3 million, demonstrating the increasing contribution of individual digital professionals and remote service providers to export earnings.

The survey highlights that Pakistan has emerged as one of the world's leading freelancing destinations, supported by a young workforce, expanding digital connectivity and targeted skills development programmes.

Human capital development remained a major focus area during FY2025-26. According to the survey, DigiSkills.pk conducted more than 5.14 million trainings during the fiscal year, equipping thousands of individuals with market-oriented digital skills. Freelancers trained under the programme earned approximately $1.65 billion, reflecting the growing economic impact of digital skills initiatives.

The Pakistan Software Export Board (PSEB) continued efforts to promote the country's technology sector in international markets. The survey reveals that PSEB participated in 20 international technology events during the fiscal year, generating 4,228 qualified business-to-business leads and reported business worth $73.9 million.

The organisation also expanded its network of Software Technology Parks (STPs) across the country. More than 50 technology parks are now supporting over 350 IT and IT-enabled services companies, providing infrastructure and business support to firms operating in the digital economy.

According to the survey, the expansion of technology parks is helping create an ecosystem that encourages innovation, entrepreneurship and export-oriented growth while generating employment opportunities for skilled professionals.

The government also continued investing in advanced technology capabilities. Various programmes implemented through PSEB and Ignite supported training in artificial intelligence, semiconductor design, startup incubation, freelancing and advanced digital technologies.

A major policy development during the fiscal year was the approval of Pakistan's Artificial Intelligence Policy 2025. The survey notes that the policy aims to accelerate AI adoption, encourage innovation, strengthen skills development and promote digital transformation across key sectors of the economy.

The telecommunications sector also supported the growth of the digital economy. Broadband subscribers increased to 161 million by March 2026, while broadband penetration reached 64.2%. Improved digital connectivity is expected to further strengthen the country's ability to export IT services and compete in global technology markets.

According to the survey, total telecom subscriptions reached 207.2 million during the fiscal year, reflecting the continued expansion of digital access across the country. Telecom revenues reached Rs837 billion, while the sector contributed Rs285 billion to the national exchequer.

The survey further notes that Pakistan achieved a major milestone through the successful 5G spectrum auction conducted in March 2026, generating approximately $509.6 million through the auction of 480 MHz of spectrum across multiple bands. The development is expected to support future digital transformation and enhance the country's technological capabilities.

According to the Ministry of Finance, ICT exports have become an increasingly important component of Pakistan's external sector. Unlike traditional exports, technology exports require relatively less physical infrastructure and provide opportunities for high-value services, innovation and knowledge-based growth.

The survey concludes that continued investment in digital infrastructure, skills development, innovation and emerging technologies is expected to further strengthen Pakistan's position in the global digital economy. It notes that the sustained growth in ICT exports demonstrates the sector's potential to contribute significantly to export diversification, foreign exchange earnings, employment generation and long-term economic development.

Credit: INP-WealthPk