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One of the major developments which had profound impact on the economic growth pattern in the world in the new millennium has been the strides in the domain of Information Technology sector. The world has observed significant growth of applications in diverting areas of Information Technology. Information Technology has permeated nearly every aspect of modern business operations and communications. This technology really has drastically changed the working of today’s organizations and is being used both by developed and developing countries for performance improvements. Similar to other developing countries, this technology is also being applied in all the organizations of Pakistan. Information Technology is also one of the most exciting areas of research that has been the focus of intense interest throughout the globe over the decades but little has been devoted to examining the impact of Information Technology on Pakistani organizations.

This study examines the impact of IT on organizational performance in quantitative terms of Pakistan’s manufacturing and banking sectors over period of 1994-2005. The primary data was collected through in-depth interviews, official documents and field surveys of 48 companies, 24 in manufacturing sector(12 local and 12 foreign) and 24 in banking sector(12 local and 12 foreign). The data was tested by applying different statistical and financial techniques. The results of the research have led to the conclusion that Information Technology has positive impact on the organizational performance of all the organizations but the banking sector performance outstrips the performance of manufacturing sector and local banking sector of Pakistan dominate the scene by implementing world class IT