Pakistan’s information technology (IT) sector is experiencing significant growth, driven by government initiatives, international collaborations, and a surge in exports. The government’s ambitious target to increase IT exports to $25 billion over the next five years is being supported by various strategic measures and partnerships.

Surge in IT Exports

In the first eight months of the fiscal year 2024-25, Pakistan’s IT exports have risen by 26%, reaching $2.48 billion. This growth is attributed to the expansion of Pakistani IT firms into global markets, particularly in the Gulf Cooperation Council (GCC) region.

Also Read: Pakistan To Host Inaugural Digital Foreign Direct Investment Forum In Islamabad

The State Bank of Pakistan’s (SBP) decision to increase the retention limit for IT exporters’ foreign currency accounts from 35% to 50% has also played a crucial role, allowing companies to reinvest more earnings abroad.

Government Initiatives and Policy Reforms

Prime Minister Shehbaz Sharif has emphasized the importance of the IT sector in Pakistan’s economic growth. The government has introduced several initiatives to support this sector, including the launch of the Digital Nation Act 2025, which aims to transform Pakistan’s digital economy. Additionally, the government plans to host a Digital Foreign Direct Investment (FDI) Forum in Islamabad to attract global investors to Pakistan’s tech sector.

To further support the IT industry, the government is working on finalizing policies related to artificial intelligence, fiberization, and semiconductors. These policies are expected to provide a comprehensive framework for the development and regulation of emerging technologies in the country.

International Collaborations

Pakistan is actively seeking international partnerships to bolster its IT sector. A notable development is the collaboration with Huawei, which aims to train 200,000 Pakistani youth through a joint skill development program. This initiative is expected to enhance the technical skills of the workforce and prepare them for opportunities in the global IT market.

Furthermore, Pakistan is exploring Chinese expertise in telemedicine and pharmaceutical technology to improve its healthcare services. Federal Health Minister Mustafa Kamal highlighted the progress being made in telemedicine by benefiting from China’s advancements in this field.

Infrastructure Development

The government is also focusing on infrastructure development to support the IT sector. The Islamabad IT Park project, with a government investment of $77 million, is expected to play a significant role in achieving the $25 billion IT exports target. The project is being expedited in collaboration with Korean experts to ensure timely completion.

With supportive policies, international collaborations, and a focus on infrastructure development, Pakistan’s IT sector is poised for substantial growth. The government’s commitment to enhancing digital capabilities and fostering a conducive environment for technology-driven businesses indicates a promising future for the country’s IT industry.