Pakistan’s IT and IT-enabled services sector recorded $2.97 billion in export inflows during July to February FY2026, marking a 19.6% year-on-year increase. However, a steady drop in monthly receipts over the past two months has tempered expectations around the government’s $5 billion annual target.

IT Exports Hit $2.97 Billion in July to February FY2026

According to data from the State Bank of Pakistan (SBP), Pakistan’s ICT export earnings grew by 19.78% year-on-year, reaching $2.61 billion in the first seven months of the current fiscal year ending June 2026, up from $2.18 billion during the same period last year. Cumulative inflows reached $2.97 billion by the end of February 2026, compared with $2.48 billion in the same period of FY2025.

IT exports now account for over 10.8% of Pakistan’s total exports. This is considered a historic milestone, reflecting the country’s gradual economic shift from traditional goods like textiles and rice toward high-value digital services.

Monthly Receipts Show a Two-Month Decline

Despite the cumulative growth, monthly figures reveal a softening trend. The sector peaked at $437 million in December 2025, before declining to $374 million in January 2026 and $365 million in February 2026, a drop of over 16% in just two months.

Analysts project exports to grow 18 to 20% in FY2026, which could bring the total to around $4.5 billion. This figure still falls short of the ambitious $5 billion target set under the government’s national economic plan, Uraan Pakistan. At the current monthly run rate of approximately $365 million, full-year IT exports are likely to plateau around $4.4 to $4.5 billion.

Geopolitical and Regional Pressures Add Uncertainty

The slowdown in monthly inflows is partly attributed to broader global uncertainty. Ongoing regional tensions have prompted clients, particularly across the US and GCC markets, to delay digital transformation and expansion projects. This has reduced near-term order flow for Pakistani IT firms.

The growing tendency of international companies to outsource software development, cybersecurity, and digital transformation projects has boosted Pakistan’s profile as an affordable IT services provider. Even so, regional instability continues to introduce uncertainty into forward planning for many of these engagements.

Beyond export figures, Pakistan’s broader startup ecosystem reflects a market in a phase of cautious maturation, with genuine momentum tempered by structural funding constraints.

Ecosystem Value Surpasses $4 Billion

Pakistan’s venture capital-backed startups have surpassed a combined enterprise value of $4 billion, up 3.6 times since 2020, according to the January 2026 Pakistan Tech Report by Dealroom.co and inDrive. The growth rate outpaces larger ecosystems including India, New York, Paris, and Dubai, placing Pakistan among emerging “New Frontier” tech markets.

The country now hosts over 170 VC-backed startups, with roughly 17 “breakouts” that have raised between $15 million and $100 million, two scale-ups that have crossed $100 million in funding, and 13 “Colts” generating between $25 million and $100 million in annual revenue.

According to TechList Pakistan, which tracks startup funding activity across the country, deal flow in early-stage rounds, particularly pre-seed and seed, has remained consistent through Q1 2026. Fintech, healthtech, and B2B SaaS have emerged as the three most active verticals during this period.

Startup Funding Rebounds in 2025

Pakistani startups secured over $74.23 million in equity and hybrid financing in 2025, spanning pre-seed, seed, and Series A rounds across fintech, mobility, healthtech, and other sectors. According to Data Darbar, local startups raised about $36.6 million in equity across 10 disclosed rounds, a modest increase from $22.5 million the previous year, though deal volume slipped slightly from 15 to 14 transactions.

Fintech and Healthtech Lead Investment Activity

The fintech sector continues to dominate investment activity, with startups such as Haball and Metric securing sizeable Pre-Series A and seed funding rounds. Analysts say fintech’s appeal lies in its ability to integrate with banking infrastructure, simplify payments, and tap into an underserved market of SMEs and digital consumers.

Haball secured a $52 million Pre-Series A funding round led by Zayn VC and backed by Meezan Bank. The company has scaled its platform to handle over $3 billion in payments, disbursing more than $110 million in financing while supporting thousands of SMEs and multinational clients.

Healthtech is emerging as the second major growth engine. MedIQ’s $6 million Series A and Xylexa’s $1 million seed round highlight strong investor appetite for solutions that address healthcare accessibility, a critical need in a country of over 240 million people.

No Unicorns Yet: The Capital Gap Remains

Despite the momentum, no Pakistani startup has yet reached unicorn status or surpassed $100 million in annual revenue. Limited domestic capital is widely identified as the primary bottleneck holding the ecosystem back from the next level of scale.
Globally, venture capital investment reached $512.6 billion in 2025, up 30.8% from 2024, with artificial intelligence alone accounting for $270.2 billion. For Pakistan, these global trends highlight the structural challenge of competing in capital-intensive sectors like AI without matching infrastructure or investment scale.

Female-Founded Startups Gain Ground

One of 2025’s notable trends is the rise of female-led startups, which raised $8.8 million in disclosed equity, accounting for more than 24% of total funding. Startups including Shadiyana, BusCaro, Metric, MedIQ, and Lean Outset were among the female-founded or co-founded ventures contributing to this shift. TechList Pakistan has closely documented this trend through its founder coverage and funding trackers.

Policy Reforms Supporting Export Growth

The State Bank of Pakistan raised the permissible retention limit in Exporters’ Specialised Foreign Currency Accounts (ESFCA) from 35% to 50%. This allows IT exporters to retain a larger share of their dollar earnings, a reform that has provided greater liquidity for companies reinvesting in global operations.

Pakistan’s 5G spectrum auction, conducted in March 2026, is expected to unlock new product categories in healthtech, edtech, IoT, and industrial automation that have remained structurally inaccessible on existing infrastructure. Building quality talent, empowering grassroots entrepreneurship, and accelerating local AI adoption are identified as the three pillars needed to position Pakistan as a competitive global IT export hub.

Long-Term Target: $10 Billion by 2029

National long-term targets foresee $10 billion in annual IT exports by 2029, a goal that requires a significant acceleration from the current growth trajectory. IT exports now constitute over 40% of Pakistan’s total services exports, supporting foreign exchange stability, high-value employment, and entrepreneurship. This cements the sector as a core pillar of Pakistan’s broader economic strategy.

Closing the gap between the current pace and the $5 billion FY2026 target will require reversing the recent monthly decline, broadening client geographies beyond the US and Gulf, and continuing to scale startups into globally competitive businesses. The structural groundwork is being laid, but sustained execution remains the sector’s defining test going forward.

Sources: State Bank of Pakistan (SBP), Ministry of Information Technology and Telecommunication, Data Darbar, Dealroom.co / inDrive Pakistan Tech Report (January 2026), Topline Research, Pakistan Software Houses Association (P@SHA), TechList Pakistan.

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In a significant development for Pakistan’s technology sector, Systems Limited, one of the country’s largest listed software firms, has announced its plan to acquire Confiz Pakistan (Private) Limited through a formal merger.

The announcement was made via an official notice submitted to the Pakistan Stock Exchange (PSX) on Thursday, outlining the company’s intention to absorb Confiz Pakistan and its associated group entities.

Board Approval and Legal Framework

According to the PSX filing, the Board of Directors of Systems Limited approved the acquisition through resolutions passed by circulation on December 10, 2025. The transaction will be executed through an amalgamation scheme prepared under Sections 279 to 283 and 285(8) of the Companies Act, 2017.

The proposed merger involves the transfer of all direct and indirect shareholdings of Confiz Pakistan into Systems Limited, subject to regulatory clearances and legal approvals.

Share Issuance and Regulatory Approvals

Under the terms of the proposed scheme, Systems Limited will issue shares to the shareholders of Confiz Pakistan as consideration for the merger.

The arrangement remains conditional upon approvals from shareholders, creditors, and relevant regulatory authorities, as well as formal sanction from the Lahore High Court. Any modifications required by regulators or the court will also be incorporated before final implementation.

About Confiz Pakistan

Confiz Pakistan is the local arm of Confiz, a global technology services firm founded in 2005. The company specializes in digital transformation services, including cloud solutions, data and artificial intelligence, enterprise software development, and mobile application development. Its clientele spans key industries such as retail, fintech, and enterprise services.

About Systems Limited

Established in 1977 as a private limited company, Systems Limited transitioned into a publicly listed entity in 2005 and was officially listed on the PSX in 2015. The company’s core operations include software development and business process outsourcing (BPO) services.

With a strong domestic presence, Systems Limited has successfully expanded its operations across the United States, United Kingdom, Europe, and the Middle East, positioning itself as a major player in global digital transformation services.

Strategic Impact on Pakistan’s IT Sector

The proposed acquisition underscores Systems Limited’s growth ambitions and reflects increasing consolidation within Pakistan’s technology industry. The merger is expected to enhance service capabilities, expand global reach, and strengthen Pakistan’s standing in the international IT services market.

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In a major milestone for Pakistan’s tech ecosystem, Securiti AI, founded by Pakistani entrepreneur Rehan Jalil, has been acquired by data-resilience giant Veeam in a deal valued at around $1.7 billion.

The acquisition brings Securiti’s data-security, privacy, and AI-governance tools into Veeam’s portfolio—strengthening its ability to protect enterprise data as businesses expand their use of artificial intelligence.

Founded by Rehan Jalil, a Silicon Valley–based Pakistani tech leader, Securiti AI developed the Data Command Center, a platform that helps organizations find, protect, and manage sensitive data across cloud environments and SaaS apps. Its solutions support companies in complying with privacy regulations and ensuring trustworthy AI development.

Under the agreement, Jalil will become President of Security and AI at Veeam once the deal is finalized later this year. The transaction, a mix of cash and stock, is pending standard regulatory approvals.

Industry experts say the move highlights the rising global demand for AI-governance and data-protection platforms, as organizations seek to ensure responsible AI adoption while safeguarding user data.

For Pakistan’s growing tech community, the $1.7 billion sale represents one of the largest international exits by a Pakistani-founded company, underscoring the global impact of Pakistani innovators in Silicon Valley.

Veeam said it plans to continue offering Securiti’s existing products while integrating its privacy, governance, and AI-trust tools into Veeam’s backup and recovery solutions. The combined technology aims to help customers accelerate secure AI adoption and maintain full control over their data assets.

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Netflix shares are headed for their steepest weekly drop since April amid a Musk-led boycott campaign.. (AP Photo/Alex Brandon, File)

Netflix (NASDAQ: NFLX) shares slid nearly 5% this week, marking their steepest decline since April 4, as Tesla CEO Elon Musk intensified his campaign urging consumers to cancel subscriptions to the streaming giant.

The drop comes in sharp contrast to the broader market, which gained about 2% to fresh record highs, and also trails Big Tech peers like Amazon (NASDAQ: AMZN) and Meta (NASDAQ: META).

Musk Urges #CancelNetflix

Musk, who has more than 227 million followers on X (formerly Twitter), accused Netflix of promoting transgender content in children’s programming. “Cancel Netflix for the health of your kids,” he posted earlier this week, while sharing a series of messages criticizing the streamer.

Netflix has not issued a comment in response to the boycott calls.

Cancel Netflix for the health of your kids https://t.co/uPcGiURaCp

— Elon Musk (@elonmusk) October 1, 2025

Earnings Ahead

The boycott comes just weeks before Netflix’s third quarter earnings report. Analysts note that while the company no longer discloses subscriber figures quarterly, the near-term financial impact of cancellations could be difficult to measure.

In its latest earnings release, Netflix topped Wall Street expectations and raised its full-year revenue outlook. The company guided for Q3 revenue of $11.53 billion and EPS of $6.87, both above consensus. For 2025, revenue is projected between $44.8 billion and $45.2 billion, boosted by strong adoption of its ad-supported tier, favorable foreign exchange trends, and steady user engagement.

Executives expect advertising revenue to double to $3 billion in 2026, supported by popular returning shows like “Stranger Things”, “Wednesday”, and “Squid Game”, alongside growing investment in live sports streaming.

Not the First Backlash

Netflix has faced public boycotts before. In 2020, the release of the French film “Cuties” sparked bipartisan criticism, with cancellation rates briefly surging fivefold. However, the company ultimately saw little long-term damage.

Analysts Remain Bullish

Despite recent volatility, many analysts remain optimistic. Oppenheimer’s Jason Helfstein reiterated an Outperform rating and a $1,425 price target, citing strong Q3 engagement data, with viewing hours up 20% year-over-year, as well as momentum in live programming and original content.

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In a major step towards advancing Pakistan’s digital payment ecosystem, PayFast, a State Bank of Pakistan-licensed fintech, and Askari Bank, one of the country’s leading commercial banks, have entered into a strategic partnership to roll out a white-label digital checkout solution powered by Raast.

The agreement was signed at Askari Bank’s Digital Innovation Lab at NSTP, NUST in Islamabad, setting the stage for a collaboration aimed at delivering secure, seamless, and customizable digital payments for businesses and consumers nationwide.

Raast at the Core of Innovation

At the heart of this partnership is Raast, Pakistan’s instant and interoperable payment system. By embedding Raast into the platform, the solution will enable faster, simpler, and more secure Person-to-Merchant (P2M) payments, while driving financial inclusion by expanding access to reliable digital transactions across retail, e-commerce, and service sectors.

Empowering Institutions and Consumers

Through this alliance, Askari Bank will leverage PayFast’s robust infrastructure to offer its customers and merchants a fully branded checkout experience. The platform will feature Raast-enabled digital merchant onboarding, an internet payment gateway, and e-invoicing, helping businesses streamline online payments and improve operational efficiency.

Adnan Ali, CEO of PayFast, said:

“This partnership reflects our commitment to local solutions for local needs. By integrating Raast into Askari Bank’s white-label platform, we are delivering secure and seamless payments under a trusted infrastructure—empowering institutions and creating lasting impact for businesses and consumers alike.”

Mahwish Saad Khan, Chief Business Officer at PayFast, added:

“This milestone strengthens our mission to provide institutions with modern digital infrastructure. By embedding Raast into the checkout experience, we are supporting Askari Bank in leading Pakistan’s payments innovation.”

Ali Naqvi, Chief Information Officer at Askari Bank, commented:

“With Raast-powered onboarding, e-invoicing, and internet payment solutions, we are not only strengthening Askari Bank’s digital footprint but also unlocking new opportunities for retail, wholesale, e-commerce, and services. This is more than technology—it’s empowerment, inclusion, and accelerated growth for Pakistan’s digital economy.”

Toward a Cashless Pakistan

This collaboration aligns with Prime Minister Shehbaz Sharif’s vision of a cashless, digitally empowered Pakistan, reinforcing the role of local financial institutions and fintechs in shaping a more inclusive and efficient economy.

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ITCN Asia 2024 Photo.

E-commerce Gateway Pakistan (Pvt.) Ltd. has officially announced the 26th edition of ITCN Asia Karachi 2025, the country’s biggest IT and Telecom exhibition and conference. The event is scheduled for September 23–25, 2025, at the Karachi Expo Centre.

Backed by the Ministry of IT & Telecom’s flagship initiative Tech Destination Pakistan and endorsed by the Special Investment Facilitation Council (SIFC), this year’s ITCN Asia underscores Pakistan’s vision of becoming a global digital hub. The exhibition will be inaugurated by Federal IT Minister Shaza Fatima Khawaja.

Last year, the event witnessed over $500 million worth of MoUs, setting a record milestone for Pakistan’s tech industry. Organizers are optimistic that 2025 will surpass these achievements with even more impactful partnerships and business deals.

Global Participation

ITCN Asia 2025 will bring together delegations and tech leaders from across the globe, including the United Kingdom, Türkiye, Saudi Arabia, UAE, China, USA, Australia, Malaysia, Indonesia, Egypt, Jordan, and more than 25 countries in total.

The three-day event will showcase:

• 700+ exhibitors and international pavilions

• 100+ foreign delegates representing leading global tech firms

• Innovations in AI, fintech, cybersecurity, e-commerce, 5G, and digital transformation

Over 50,000 visitors—including policymakers, investors, startups, entrepreneurs, and diplomats—are expected to attend, making it the largest platform for networking, knowledge sharing, and business development in Pakistan’s digital economy.

Driving Pakistan’s Digital Future

Highlighting the importance of the event, Muhammad Umair Nizam, Group Director at E-commerce Gateway Pakistan, said:

“Pakistan’s IT sector is not just an industry—it is the driving engine of our economic transformation, contributing record exports, attracting global investments, and creating jobs for our youth.”

Since its inception 25 years ago, ITCN Asia has evolved into Pakistan’s most significant tech event. It successfully transitioned to virtual and hybrid formats during the pandemic and continues to grow stronger with each edition.

ITCN Asia Karachi 2025 is poised to become a cornerstone for Pakistan’s journey toward digital innovation and global recognition.

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After a 25-year presence, Microsoft has officially shut down its office in Pakistan as part of a broader global restructuring initiative. The decision reflects the company’s ongoing transition to a cloud-first, partner-led model.

This closure coincides with Microsoft’s latest round of global layoffs, which will impact around 9,100 employees—approximately 4% of its total workforce—marking its most significant workforce reduction since 2023, according to The Verge.

Microsoft never maintained a full-scale commercial operation in Pakistan. Instead, its local office functioned primarily as a liaison center, catering to enterprise, education, and government clients. In recent years, much of this activity had already been delegated to regional partners, with licensing and contract management handled out of Microsoft’s European headquarters in Ireland.

Former President Dr. Arif Alvi criticized the move on social media, calling it a “troubling sign.” He stated that Microsoft once considered Pakistan for expansion but ultimately opted for Vietnam by late 2022 due to local instability. “The opportunity was lost,” he wrote.

Jawwad Rehman, Microsoft Pakistan’s founding country manager, echoed this sentiment, noting that the exit reflects the challenging business environment. “Even global giants like Microsoft find it unsustainable to stay,” he said in a LinkedIn post.

Tech entrepreneur Habibullah Khan added that Microsoft’s revenue from Pakistan was estimated at around $50 million—less than 0.02% of the company’s global income—and that local staffing had already been significantly reduced. “Their relationship with Pakistan was very tenuous,” he wrote on X (formerly Twitter).

Despite the closure, Microsoft will continue to serve Pakistani customers through its regional teams and partner network. However, the move highlights the increasing pressure on multinational companies to streamline international operations in response to evolving global strategies.

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India has announced a major policy shift by removing import duties on key raw materials used in electric vehicle (EV) battery and mobile phone manufacturing. The decision comes as part of a broader effort to strengthen domestic production and cushion the impact of upcoming U.S. tariffs.

Boosting Local Manufacturing & Exports

Speaking ahead of the Finance Bill 2025 vote in parliament, Finance Minister Nirmala Sitharaman emphasized the government’s commitment to enhancing local manufacturing competitiveness.

“We aim to boost domestic production and enhance export competitiveness by reducing duties on raw materials,” Sitharaman stated.

Under the new policy, India will exempt 35 critical components used in EV battery production and 28 raw materials required for mobile phone manufacturing from import duties.

Response to U.S. Tariff Pressures

This move is widely seen as a countermeasure to the U.S.’s new reciprocal tariffs, set to take effect on April 2, 2025, under President Donald Trump’s administration. India has been engaged in trade discussions with the U.S. to resolve tariff disputes and establish a balanced bilateral trade pact.

Earlier reports by Reuters revealed that India is considering lowering tariffs on over half of U.S. imports—worth approximately $23 billion—as part of a phased trade deal.

A Step Toward Economic Growth

Last week, an Indian parliamentary committee recommended reducing import tariffs on raw materials to support local manufacturers. By eliminating duties on essential components, the government aims to attract more investments, foster innovation, and ensure India remains a competitive global manufacturing hub.

What’s Next?

With trade negotiations ongoing, industry experts are closely watching how this decision impacts India’s tech and EV sectors. The exemption of these duties could lead to lower production costs, potentially benefiting consumers with more affordable EVs and smartphones in the future.

Stay tuned to Techlist for more updates on this developing trade story.

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Pakistan has officially stepped into the future of digital finance! The government has launched the Pakistan Crypto Council (PCC), a groundbreaking move aimed at regulating and integrating blockchain technology and digital assets into the country’s financial system.

Announced by the Ministry of Finance on Friday, this initiative is set to shape the nation’s crypto landscape, ensuring a structured, secure, and innovative approach to digital assets.

Leadership at the Helm

To lead this ambitious effort, Finance Minister Muhammad Aurangzeb has been appointed as the Chair of the Pakistan Crypto Council, reflecting the government’s commitment to digital transformation. Bilal Bin Saqib, a blockchain expert and the Chief Advisor to the Finance Minister on PCC, will serve as the CEO, spearheading policy development and innovation.

The council’s board includes heavyweights such as the Governor of the State Bank of Pakistan, the Chairman of the Securities and Exchange Commission of Pakistan (SECP), the Federal Law Secretary, and the Federal IT Secretary. This diverse leadership ensures a balanced and forward-thinking approach to crypto regulation.

Why This Matters for Pakistan

Speaking at the launch, Finance Minister Muhammad Aurangzeb emphasized the importance of keeping pace with global financial advancements:

“The world is moving towards digital finance, and Pakistan must not be left behind. The establishment of the Pakistan Crypto Council is a step towards embracing innovation while ensuring regulatory protection for investors and the financial system.”

Similarly, Bilal Bin Saqib highlighted the Council’s vision:

“This is not just about regulations—it’s about creating an ecosystem where blockchain and digital finance can thrive. Our goal is to position Pakistan as a serious player in the global digital economy while ensuring security, transparency, and innovation.”

What’s Next?

The Pakistan Crypto Council has outlined clear priorities, including:

1. Developing regulatory guidelines to encourage crypto adoption.
2. Engaging with international blockchain organizations to implement best practices.
3. Collaborating with fintech startups, investors, and developers to fuel responsible innovation.
4. Ensuring consumer protection and financial security through strong legal frameworks.

A New Chapter for Pakistan’s Digital Economy

With the launch of PCC, Pakistan is sending a clear message—the country is open for business and ready to lead in digital finance. This initiative not only embraces technological progress but also positions Pakistan as a forward-thinking player in the global crypto space.

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