Eid holidays weigh on May exports as sector maintains double-digit yearly growth
ISLAMABAD, June 17, 2026 — Pakistan’s IT exports declined on a monthly basis in May 2026 due to fewer working days during the Eid holidays, although the sector continued to post strong double-digit growth compared with a year earlier.
According to the latest data, Pakistan’s information technology exports stood at $373 million in May, up 13% from the same month last year. However, exports fell 12% compared with April, reflecting reduced business activity during the festive period.
Analysts attributed the monthly decline primarily to Eid-related holidays, which shortened the number of working days and temporarily affected export receipts from the country’s technology sector.
IT Exports Maintain Strong Growth Momentum
Despite the monthly slowdown, Pakistan’s IT industry continued to demonstrate robust growth.
During the first eleven months of fiscal year 2025-26 (11MFY26), cumulative IT exports reached $4.2 billion, representing a 21% increase compared with the corresponding period of the previous fiscal year.
The performance underscores the sector’s growing contribution to Pakistan’s export earnings and its increasing role in supporting economic growth.
Net IT Exports Remain Healthy
Net IT exports, measured as exports minus imports, stood at $314 million in May 2026.
The figure was 7% higher than the same month a year earlier, indicating that the sector continues to generate substantial foreign exchange inflows despite short-term fluctuations in export receipts.
Industry experts say Pakistan’s IT sector remains among the country’s fastest-growing export industries, supported by rising demand for software development, business process outsourcing and digital services.
Government Targets Higher Export Revenues
The government has projected IT exports of $4.5 billion for FY2025-26, implying annual growth of approximately 18%.
Looking further ahead, the government’s “Uraan Pakistan” economic transformation plan targets annual IT exports of $10 billion by FY2028-29.
Achieving that objective would require a compound annual growth rate of roughly 27% over the next three years.
Long-Term Outlook Remains Positive
Analysts remain optimistic about the sector’s long-term prospects, citing a growing pool of skilled technology professionals, expanding digital infrastructure and increasing participation in global technology markets.
While seasonal factors affected export performance in May, the sector’s strong annual growth trend suggests Pakistan remains on track to achieve higher IT export revenues in the coming years.
Continued policy support, investment in digital infrastructure and expansion into international markets are expected to remain key drivers of future growth.