Pakistan’s IT Exports Rise, But Are We Keeping Up With the World?

The Information Technology (IT) sector is experiencing rapid growth, with Pakistan’s IT exports rising by an impressive 28% to reach $1.86 billion. Minister of State for Information Technology Shaza Fatima Khawaja shared this development, expressing confidence in continued expansion in the coming months.

Speaking at LEAP 2025 during the Pakistan-Saudi Business Forum, Khawaja emphasized the Digital Nation Act 2025, a strategic initiative aimed at accelerating innovation, strengthening cybersecurity, fostering artificial intelligence (AI) development, and creating a thriving ecosystem for IT startups. She also highlighted Pakistan’s growing technological partnership with Saudi Arabia, which is expected to unlock new investment opportunities. But the question is, “Are these numbers enough to compete with the world?” Unfortunately, the answer is no. We are lagging far behind other countries.

Pakistan’s IT Exports Rise, But Are We Keeping Up With the World?

Despite this growth, Pakistan’s IT exports remain significantly lower than many other countries that have successfully built strong digital economies.

• India: India’s IT and software services exports reached $194 billion in 2023, driven by a robust outsourcing industry, favourable regulations, and strong global partnerships. The country has established itself as a global IT powerhouse, benefiting from large-scale investments in digital infrastructure, high-skilled talent, and government-backed incentives.
• Philippines: The country’s IT and business process outsourcing (BPO) industry generates over $30 billion in annual revenue, benefiting from a strong English-speaking workforce and favourable government policies.
• Vietnam: Vietnam has emerged as a strong competitor in the global IT sector, generating over $15 billion in IT exports, with a focus on software development and hardware manufacturing. The country’s government has actively promoted IT education and foreign investment, making it a key player in the international tech industry.

Key Challenges and How Pakistan Can Improve

To compete with leading IT-exporting nations and boost its digital economy, Pakistan needs to focus on:

1. Policy Reforms and Incentives: While initiatives like Special Technology Zones (STZs) and tax incentives for IT companies are steps in the right direction, Pakistan must streamline bureaucratic processes, improve ease of doing business, and ensure regulatory stability to attract long-term foreign investments.
2. Investment in Digital Infrastructure: Expanding broadband access, enhancing cloud computing services, and improving data security regulations are critical to positioning Pakistan as a reliable destination for IT outsourcing and fintech solutions.
3. Skilled Workforce Development: India and Vietnam have invested heavily in tech education and skill-building programs. Pakistan must expand digital training initiatives, promote AI and cybersecurity education, and establish stronger industry-academia collaborations.
4. Global Market Penetration: Pakistan needs stronger trade agreements and international partnerships to expand its footprint in North America, Europe, and the Middle East. Government-led initiatives to market Pakistani IT services globally can attract more clients and investments.
5. Attracting Foreign Direct Investment (FDI): The upcoming Digital Foreign Direct Investment (FDI) Forum in Islamabad is a step forward, but Pakistan must offer competitive incentives, ensure investor confidence, and improve intellectual property protections to encourage sustained FDI in the IT sector.

Our Thoughts

Pakistan’s 28% growth in IT exports is a promising indicator of its potential, but the country still lags behind regional and global competitors. By focusing on policy improvements, digital infrastructure, skill development, and international collaborations, Pakistan can accelerate its IT export growth and position itself as a key player in the global digital economy. If these challenges are addressed, Pakistan’s IT exports could surpass $3 billion in the near future, setting the foundation for a stronger and more competitive technology sector.

See Also: Pakistan Targets 2025 as the Year of 5G Expansion