Pakistan’s IT industry is eyeing a major growth opportunity as changes in global trade dynamics create a favorable environment for tech exports. Experts believe the country could reach $5 billion in IT exports within the next two years, fueled by shifting supply chains and the absence of new tariffs on tech services by the United States.
While the new U.S. administration has imposed reciprocal tariffs on many goods across various countries, the services sector—particularly technology—has remained unaffected. This has sparked optimism among Pakistani IT firms looking to expand into high-potential international markets.
Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), explained that the global realignment of supply chains has opened a window of opportunity for Pakistan to emerge as a reliable and cost-effective outsourcing hub. He highlighted the country’s advantages, including up to 70% cost savings compared to Western markets, a highly skilled workforce, and a thriving startup ecosystem.
Pakistan’s IT exports hit $2.8 billion by March 2025, showing a strong 23% year-on-year growth. March alone saw exports of around $348 million, marking the 18th consecutive month of growth. This surge is attributed to strategic reforms and support from the Ministry of IT & Telecom (MoITT) and the Special Investment Facilitation Council (SIFC), such as relaxed foreign currency rules, IT park expansion, and simplified policies for attracting foreign investment.
Nizam urged the government to introduce a dedicated incentive package for the IT sector to help fully leverage this momentum. With the right branding, diplomatic engagement, and business-friendly policies, he believes the $5 billion export milestone is well within reach over the next 18 to 24 months.
He added that in today’s global landscape, Pakistan isn’t just an alternative—it’s a smart choice for companies seeking innovation, dependability, and value.
Currently, Pakistan’s IT exports are primarily directed to North America, followed by Europe and the Middle East.
Saad Shah, CEO of Hexalyze, noted that Pakistan is gaining ground in global IT markets as a result of tariff impacts on other countries. He emphasized the country’s affordability and quality as key strengths for outsourcing partnerships.
He also pointed out the potential of joint ventures with international companies to attract more business, while stressing the importance of strategic marketing, international branding, and workforce development.
To further scale up, Shah recommended that the government and industry associations collaborate with welfare organizations on training programs to develop talent in key tech areas.
With just three months left in the fiscal year, IT exports are projected to close between $3.5 and $3.7 billion. Under the Uraan initiative, the government aims to reach $10 billion in annual IT exports by the end of FY2029.
