Lahore — Pakistan’s information technology and services sector has achieved a significant milestone, with IT exports surpassing USD 3 billion in FY2025. This growth is largely driven by small and medium enterprises (SMEs) securing remote work contracts from North America, Europe, and the Middle East.

Highlights:

• Many SMEs offering software development, mobile apps, fintech solutions, and e-commerce enablement are reporting double-digit export growth compared to the previous fiscal year.
• The demand for remote dev teams, AI/ML services, and cybersecurity has surged among foreign clients looking for cost-effective and high-quality partners.
• Key cities like Karachi, Lahore, and Islamabad continue to dominate export activity, while newer smaller hubs are emerging with improved internet infrastructure and government incentives.

Challenges:

• Currency fluctuations, delayed payments, and regulatory inconsistencies remain concerns for exporters.
• Access to venture capital funding is still limited for early-stage tech startups outside major hubs.
• Infrastructure—especially stable electricity and internet connectivity—continues to be a bottleneck for smaller firms.

What to watch:

• Government policy reforms to streamline export incentives and digital tax frameworks.
• Expansion of tech incubators and acceleration programs in smaller cities.
• Partnerships with global platforms and clients to broaden scope beyond traditional markets.