Pakistan’s IT sector sees new growth as AI and outsourcing demand rises

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ISLAMABAD, May 22: Pakistan’s IT sector is gaining new export opportunities as global companies expand artificial intelligence use, shift outsourcing work to cost-effective markets and look beyond traditional technology hubs, according to industry officials and data cited by Wealth Pakistan.

The trend is expected to benefit Pakistani software exporters, freelancers and technology start-ups at a time when the country’s digital services exports are already showing strong growth.

According to the State Bank of Pakistan, IT and IT-enabled services exports reached $3.39 billion during July–March FY2025-26, up 20 percent from the same period last year. Monthly IT exports rose to $413 million in March 2026, the second-highest monthly figure recorded by the country.

Analysts cited by Wealth Pakistan estimate that Pakistan’s IT exports could close FY2025-26 between $4.5 billion and $5 billion if the current pace continues.

AI, cloud and cybersecurity drive demand

Industry observers say rising global demand for cloud computing, AI-powered business operations, cybersecurity and remote digital services is creating more space for emerging technology markets such as Pakistan.

Pakistan’s freelance economy is also expanding. SBP data cited in recent industry reports showed that Pakistani freelancers earned $557 million in foreign exchange during the first half of FY2025-26, a 58 percent increase from the same period last year.

The Pakistan Telecommunication Authority has reported continued growth in broadband and mobile internet usage during 2025-26, supporting remote work, online services and technology firms operating across the country.

The Ministry of Information Technology and Telecommunication has also continued initiatives focused on digital transformation, IT export facilitation, start-up development and future 5G readiness.

Pakistan attracting diversified outsourcing work

Syed Junaid Imam, Member IT at MoITT, told Wealth Pakistan that international companies are diversifying outsourcing destinations instead of depending on a single market.

He said Pakistan is becoming more attractive because of competitive pricing, a large English-speaking workforce and growing expertise in cloud services, AI support and enterprise software development.

Imam said demand from Gulf countries has increased as regional businesses speed up digital transformation projects. He added that Pakistani firms are now securing larger projects in fintech, cybersecurity, health technology and digital banking.

Asfand Yar Khan, Director General IT at MoITT, said global AI adoption is changing international IT demand and opening specialized opportunities for countries with young technology talent.

He said Pakistani engineers are increasingly working in higher-value areas such as AI integration, data analytics, cybersecurity compliance and cloud migration.

He also said freelancers and remote developers from Pakistan are benefiting from the global expansion of remote work, while stronger training, policy continuity and stable internet infrastructure could help the country increase its share in the digital services market.

The Pakistan Software Export Board has expanded international branding under its “Tech Destination Pakistan” campaign to promote local technology firms abroad.

Industry analysts say Pakistan’s technology sector could remain among the country’s fastest-growing export industries, but sustained growth will depend on policy consistency, internet reliability, skilled workforce development and investor confidence.

Also read: Pakistan’s IT Sector Hits Record $366 Million in Monthly Exports

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