Key Takeaways
- Pakistan's IT and telecom exports reached a record $4.6 billion in fiscal year 2025-26.
- The sector grew by 20.6% from the previous fiscal year, with June 2026 showing strong growth.
- Textile exports stagnated at $17.93 billion, marking one of the weakest performances in recent years.
Pakistan’s information technology (IT) and telecom sector achieved a significant milestone in fiscal year 2025-26 by recording export remittances of $4.6 billion, setting a new record according to official figures from the State Bank of Pakistan (SBP). This represents an impressive growth rate of 20.6% compared to the previous fiscal year.
The robust performance in IT and telecom exports was evident throughout the fiscal year, with June 2026 showing particularly strong growth. Exports for that month reached $416 million, marking a 13.5% increase from May 2026 ($373 million) and a 12.9% rise compared to June 2025 ($339 million).
The sector’s success can be attributed to steady growth throughout the fiscal year, with cumulative IT and telecom export remittances reaching $4.184 billion during the first eleven months of 2025-26. This figure was a significant improvement from the $3.475 billion recorded in the same period of the previous fiscal year.
However, despite this growth, Pakistan’s IT and telecom exports fell short of the government's ambitious target of $5 billion for the fiscal year. The SBP data highlighted some volatility within the sector, with exports dipping from $437 million in December 2025 to $374 million in January and $365 million in February before rebounding to $413 million in March and hitting a record $423 million in April.
In contrast, Pakistan’s textile and clothing sector faced challenges during the same fiscal year. Exports stagnated at $17.93 billion, marking one of the weakest performances in recent years. This growth was attributed to elevated input costs that eroded exporters’ competitiveness and external shocks disrupting shipments.
The performance of the textile sector was further hampered by the suspension of trade with Afghanistan, which had been a significant export market worth nearly $1.5 billion. Additionally, exports to key regional markets like the UAE slowed down, particularly in the UAE, Pakistan’s largest export destination in the region.
While the absolute value of textile export proceeds increased slightly from $17.88 billion in the previous year to $17.93 billion in FY26, this growth was minimal at 0.26%. In rupee terms, exports grew by 0.69%, but in quantity terms, textiles and clothing recorded a negative growth of 16.71% to $1.267 billion from $1.521 billion in the corresponding month last year.
The sector’s performance was further impacted by a series of setbacks, including a marginal uptick in January and April, with exports remaining in negative territory for most of October 2025 through May 2026. The PBS data showed that while readymade garments saw a slight increase in value and quantity, knitwear experienced a decline.
Overall, the IT sector’s strong performance contrasted sharply with the textile industry's stagnation, highlighting the diverse economic challenges faced by Pakistan during fiscal year 2025-26.
