Page 78 - CMA Journal (Nov-Dec 2024)

S B

Sector Brief

Pakistan’s IT sector has demonstrated
exceptional growth, with exports rising by
70% over the past three years, contributing
approximately 1% to the nation’s GDP, valued
at $3.5 billion. The sector has expanded
significantly over the past four years and is
expected to reach $7 billion in the next two
to four years. In the year 2024, the IT growth
was driven by Pakistan’s youthful,
tech-oriented demographic of 227.3 million,
with 175.62 million mobile subscribers and
82.90 million internet users.
A notable portion of the population,
particularly those in the 15 to 29 age group,
forms a dynamic and digitally literate
workforce, adding to the nation’s growing talent pool.
with investors confidence rising, driven by successful
Over 25,000 IT graduates are produced annually, further
startups like Careem, Daraz, Zameen.com, and Rozee.pk
strengthening the country's competitive position in the
attracting substantial funding. Additionally, traditional
global digital market.
industries such as textiles and fertilizers are
increasingly investing in the tech ecosystem,
supporting further sector growth.
With ambitious targets to elevate IT revenue
to $7 billion within the next few years,
Pakistan is positioned to further capitalize
on favorable government initiatives, such as
a $10 billion collaboration with South Korea
to develop a technology park in Islamabad.
The country’s thriving startup ecosystem
and growing investor interest in its digital
economy further solidify its role as a key
player in the global IT market. Moreover,
Pakistan's IT exports hit $324 million in
November 2024, up 25% YoY but down 2%
MoM, with 5MFY25 exports rising 33% to $1.53 billion,
The IT sector encompasses more than 12,000 companies
driven by SBP’s relaxed retention limits and global client
and has emerged as a competitive player in software
expansion.
development, mobile app creation, and freelancing.
Pakistan ranks 3rd globally in freelancing and 5th on Sources:
Upwork, underscoring its prominence in the international  Evolution Of Information Technology in Pakistan Since 1947
IT outsourcing landscape. Moreover, annual IT  Information technology in Pakistan
remittances through formal banking channels have
 Telecommunications in Pakistan
experienced substantial growth, contributing to the
 Chapter 26: Information and Communication Technologies
sector’s ongoing development. Over the last 5 years, IT
 Pakistan’s Tech Renaissance: Innovations Shaping the Future
export remittances have increased by 137% at a CAGR of
18.85%, while domestic IT revenue stood at $1.2 billion.  Sector Profile Tech (IT and IT enabled Services)
The workforce, which includes 300,000 English-speaking  Digital Economy Report 2024
IT professionals, continues to drive the sector’s growth.  MOITT- Establishment Of 25 Software Technology Parks
Pakistan's expanding digital infrastructure and skilled  P@SHA Industry Overview: Exports of Telecom, Computer &
labor force make it an attractive destination for IT and Information Services
IT-enabled services (ITeS) investments. Aligned with  Policy Brief Series 2022
Pakistan Vision 2025 and the Digital Policy of 2018, the  SWOT Analysis of Artificial Intelligence
ICT sector aims to reach a $20 billion market size by 2025
76 ICMA’s Chartered Management Accountant, Jan-Feb 2025 BACK TO CONTENTS PAGE