Pakistan's information technology exports have reached an all-time high of $4.6 billion in the fiscal year 2026, marking a 21 percent increase from the previous year's $3.8 billion. The milestone comes as the government successfully met its $4.5 billion target for the outgoing fiscal year, according to Topline Securities. Main Developments Monthly exports in June alone hit $416 million, up 23 percent year-on-year and 12 percent month-on-month. BMA Research attributes the growth to Pakistani IT firms expanding their footprint into MENAP and European markets. Separately, local mobile phone assembly saw a decline, with 1.93 million units produced in June — down 12 percent year-on-year and 4 percent month-on-month. According to the Pakistan Telecommunication Authority, total local assembly in the first six months of calendar year 2026 fell 8 percent to 13.10 million units from 14.24 million units in the same period last year. Read also: 3 Key Takeaways from US Military's Ninth Night of Strikes on Iran Background The IT export target of $4.5 billion for FY26 was set under the 'Uraan Pakistan' national economic plan, which also envisions a $10 billion export goal by FY29. The latest figures represent steady growth from FY25's $3.8 billion, underscoring the sector's expanding role in Pakistan's economy. Why It Matters The record IT exports signal a strengthening of Pakistan's digital economy and its ability to compete in global markets. However, the drop in local mobile phone assembly — from 86 percent of domestic demand in May to 75 percent in June — highlights ongoing challenges in the hardware sector, even as software and services thrive. What's Next The government now faces the task of maintaining momentum toward the $10 billion IT export target for FY29. Continued expansion into new markets will be critical, as will addressing the decline in local mobile manufacturing to ensure balanced industrial growth.