he information technology (IT) and IT-enabled services (ITES) industry has the potential to transform Pakistan’s economy. For decades, traditional industries have been the main providers of employment. However, the digital revolution is shifting the paradigm. An estimated 20,000 IT graduates enter the job market each year. They are equipped with degrees in computer science, software engineering and allied disciplines. With a total workforce of over 600,000 IT professionals, Pakistan is cementing its position as a key player in the global digital economy.

The choices for these graduates are stark. It is either secure employment in one of a limited number of established IT firms or potentially lucrative freelancing. Pakistan ranks among the top five freelancing countries in the world, with over 1.5 million freelancers contributing to foreign exchange earnings. While freelancing has gained immense popularity, the advantages of formal employment cannot be denied. Structured career progression, financial stability, health benefits, and mentorship opportunities make formal employment an attractive option for many.

A growing number of entrepreneurs have taken the plunge over the past few years, setting up small and medium IT companies that offer structured work environments. These companies provide platforms where software engineers, data analysts and developers can thrive in a corporate framework. A few of these enterprises have achieved remarkable success and are now employing thousands of IT professionals and contributing significantly to the economy. Devsinc with its 1,200+ employees and a customer base spanning 23 countries around the globe is a prominent example of IT entrepreneurship in Pakistan. “The true strength of Pakistan’s IT sector lies in its people. We are committed to nurturing talent, providing growth opportunities and enabling professionals to compete on a global scale. Our goal is to make Pakistan a hub for world-class IT solutions,” says Usman Asif, CEO of Devsinc, a leading Pakistani ITES service provider.

The IT sector in Pakistan is undergoing a transformation. Many companies are investing in talent development. These firms are engaging fresh graduates through internships, coding boot camps, and mentorship programmes, ensuring that young professionals transition seamlessly from academia to industry. The demand for cloud computing, artificial intelligence, cybersecurity, game and app development and fintech solutions is driving the market for skilled professionals, positioning IT as one of the most promising employment sectors in the country. Working with the formal sector gives the professionals opportunities of international exposure as some of the Pakistani IT companies are engaging with global clients. Recently some of the leading firms have participated in events such as Oslo Innovation Week 2024 and the Pak-US Tech Investment Conference.

Despite progress, the IT industry still faces structural challenges. The absence of a cohesive policy framework, taxation issues and limited foreign direct investment have slowed down its growth. 

Despite the progress, the IT industry still faces structural challenges. The absence of a cohesive policy framework, taxation issues and limited foreign direct investment have slowed down its growth. Yet, the resilience of Pakistani IT professionals remains undeterred. Pakistan’s IT exports have seen remarkable growth, rising by 27 per cent in the current fiscal year to touch the $2 billion milestone, reflecting the sector’s potential despite the on-going economic and regulatory challenges. Recognising this, the government has set an ambitious $25 billion IT exports target, signalling a commitment to fostering the industry through improved policies and infrastructure development.

To achieve these ambitious goals, key structural reforms are necessary. The Pakistan Software Export Board has been working on policy recommendations to boost IT exports and talent retention. Industry experts argue that better internet infrastructure, tax incentives for IT companies and streamlined regulations for international payments can significantly improve the sector’s competitiveness. Encouragingly, several government-backed training initiatives, such as DigiSkills.pk, have trained thousands of IT professionals and freelancers, equipping them with essential skills to compete globally.

Moreover, the rise of specialised IT parks and innovation hubs across major cities like Karachi, Lahore and Islamabad is a testament to the government’s efforts to support and facilitate the industry. These hubs not only provide ultra-modern infrastructure but also foster a culture of innovation and collaboration. By nurturing startups and small-to-medium enterprises (SMEs), these ecosystems can drive job creation and attract foreign investment, further solidifying Pakistan’s position in the global IT arena.

The talent exists, demand is growing and the global digital economy is expanding. All that is needed is the collective effort to harness this potential and establish Pakistan as a global IT powerhouse. For this entrepreneurs, investors and professionals need to step up their efforts to bring about a corporate culture in the industry and offer more opportunities for formal employment of IT professionals. Realising this potential requires a concerted effort from all stakeholders including government, industry, academia and professionals. Investing in startups and providing secure employment platforms to IT professionals across the country is a major step towards making Pakistan and ITES powerhouse in the world.

Nahyan Mirza is a corporate and development communications expert with a keen interest in economic, social and current affairs. He is available on nahyan_mirza@yahoo.com