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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A two day conference laden with the finest Investors, entrepreneurs, mentors, speakers, tech companies, accelerators alongside the involvement of Media would be held on 26th and 27th of January at Arfa Software Technology Park, Lahore under the name “Startup Lahore”! There would be over 3000 attendees, 150+ startups, and 30+ investors.

The event is being held in collaboration with MIT Enterprise Forum Pakistan (MITEFP) -a global organization of dedicated professionals associated with the Massachusetts Institute of Technology (MIT) through MIT Technology Review is one of the 24 worldwide chapters looking to engage stakeholders of the entrepreneurial ecosystem and make a difference through innovation and technology.

The Conference would provide the Startups an access to Foreign as well as Domestic Investors and some training of how to convert “yet another Business” into one of the Best of the states. A piece of advice is what the Upcoming Entrepreneurs will surely attain. For the country it is an initiative to train the next generation and stimulate Entrepreneurship amongst the Youth!

Startup Rumble

One of the key features of Startup Lahore would be the Startup Rumble. It’s a platform that will make it viable for the Entrepreneurs to submit a business idea of no more than 350 words! All the ideas would be a subject to vote.

The Finalist would be chosen on the basis of votes and would invited to Lahore to present their ideas as well as a detailed business plan in front of a jury and a large audience. The top teams will then be selected for the prize money.

The winners of Startup Rumble will also be given the opportunity to be accelerated at the PlanX accelerator.
The Plan would also enable People to interact with one another and comment on various ideas! This would enable entrepreneurs to mold their idea to suit as much a people as possible.

Dr. Umar Saif, Chairman of PITB and Vice Chancellor of ITU, said while talking about the event:

“In the last decade, Lahore has transformed itself into a technology hub. With our startup and investor eco-system building up steam, Startup Lahore has come about at an opportune time. This will be a fantastic opportunity for all entities to network and showcase our talented community.”

Apply Now

Attendee, Startup or Investor passes are available on Startup Lahore website. These pass holders will have access to workshops and seminars during the whole event.

Applications are open for Startup Rumble. Everyone who is interested to participate can apply here.

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The winners of the first bootcamp for entrepreneurs and startups by FinTech incubator DFS are announced. DFS is funded by Bill and Melinda Gates.

Participants were invited from 10 countries. The participants were required to present their solutions to DFS Lab’s board of experts. This was a seven day camp held in Dar-es-Salam, Tanzania. DFS brought together 20 most promising and hard working entrepreneurs who are going to continue doing best work in the future in the technology field.

The participant got a chance to experience amazing time along with a really good experience as there were experts and mentors to guide them. There was mentorship and strategic counsel from industry stalwarts.
It was also an opportunity to be awarded a share of over $2 million of total investment and a further six months of intensive mentorship.

The funding awarded was split between four stand-out ventures – Yooz (India), Credit Fix (Pakistani FinTech Startup), SERV’D (India) and Malako (Uganda) – which were praised for their innovative approach to building new financial services for emerging markets.

Pakistani FinTech Startup Credit Fix aims to provide a platform for building credit sources for consumers with low income. In this way the people will be able to secure loans for revenue-generating assets such as auto-rickshaws and taxis which will, ultimately, improve their standard of living.

Yooz provides free, fast international remittance transfers of any value at preferential exchange rates.

SERV’D Tech Pvt. Ltd is a platform providing workers at are home some safety. It is making sure that every worker either they are maids, drivers, cooks, sweepers, peons, guard; they all are registered.

Malako aims to provide credit lines to all the low income consumers.

Director of DFS Lab, Dr Jake Kendall said,

“Digital financial services have the power to transform developing country economies, profitably and at scale. We are searching for breakthrough ideas with the potential to bring low income households from the cash economy into the digital financial realm and give them tools to improve their lives. The entrepreneurs were a very diverse and talented group from all over the world. Their different skills, perspectives and levels of experience produced valuable insights and led to dynamic, highly productive collaborations. We are very proud to be able to play a part in helping them reach their full potential.”

So now the change is just at the step of your door

The post Pakistani FinTech Startup Receives Funding By Bill & Melinda Gates Foundation appeared first on Techlist.

Good news for all startups and people looking forward to join startup business. Aplos Innovations are hosting Startup Weekend along with Seed Ventures. Both the companies are bringing to you one of the largest and important entrepreneurial event. It is to be held in Karachi on 25th of November to 27th of November.

It is a three day event with total of 54 working hours. The event aims to guide people to plan their business in just few days. This is going to be a great help for all startups and people who are interested in business. It is also going to be one best platform for young people to know about flourishing their business. It is for all entrepreneurs who want to expand their business.

This is the initial stage of the Global Startup Battle so the winning team will also qualify to present their idea in the finale of the Global Opening night. Than the event is scheduled to have a Theme Dinner. There would be a guiding and working session after which a social night will be arranged.

The closing ceremony followed by another Theme Dinner The best thing about the event is you don’t need to be a experienced person to attend this event anyone can join this event by registering and paying a small fee. Even if you don’t have a really great idea for business you can team up with other participants and show what you have.

Once you register yourself you can attend the event, socialize with people, demonstrate your skills and enjoy. You can ask for the help from the staff and they will guide you as per your needs and ideas. So everyone register yourself as soon as possible.

The Startup Weekend has finally come to Pakistan. In the City of Lights make your name shine and avail the chance.

For registration form and queries visit the Startup Weekend Karachi by following this link.

Register for the Event

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