Pakistan’s IT and IT-enabled services exports reached a record $4.6 billion in FY2025-26, rising 20.6% from $3.8 billion a year earlier. Export earnings were generated by software houses, BPO companies, technology exporters and independent freelancers. In June alone, the sector earned $416 million, nearly 23% higher year-on-year. Pakistan’s IT industry also maintained an 85% trade surplus, highlighting its growing contribution to foreign exchange earnings and the national economy.

FPCCI Warns Hybrid Tax Hike Will Hurt Buyers

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has raised concerns over the increase in sales tax on hybrid vehicles from 8.5% to 25%. The business body warned that the hike could burden consumers and severely affect Pakistan’s automobile industry. Tax concessions for hybrid and plug-in hybrid vehicles expired on June 30. As a new auto policy was not announced in time, the Federal Board of Revenue restored the general 25% sales tax rate.

Pakistan’s Digital Export Industry Reaches New $4.6 Billion Milestone

Pakistan’s IT and ICT export earnings were recorded at an all-time high of $4.6 billion in FY26, reflecting a 21% increase from $3.8 billion in FY25. A trade surplus of $3.9 billion was generated, the highest among the country’s services sectors, according to IT Minister Shaza Khawaja. Around 11.7% of Pakistan’s total exports are now contributed by IT and IT-enabled services. The sector’s growth is being supported by its limited dependence on imported raw materials, physical logistics and expensive infrastructure.