Pakistan is entering a potentially important phase in the development of its digital economy. After years of relying heavily on freelance work, software services and IT-enabled exports, the country is now seeking to move towards a higher-value technology model based on globally competitive products, digital platforms and technology-driven industries. However, does it possible having shortage of industry-ready technology talent, weak research and development capacity, limited startup and venture financing, and gaps in digital infrastructure and connectivity? On the other hand, Pakistan lacks stronger links between universities and industry, better product-development capabilities, intellectual-property support, and easier access to international markets that could transform its service-oriented IT sector into a globally competitive technology-product ecosystem.
An Ambitious Digital Economy’ Shift:
Speaking at the 2026 Shanghai Cooperation Organization (SCO) Digital Economy Forum in Urumqi, Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal said Pakistan’s IT and ICT exports had reached a record $4.6 billion in the last fiscal year. He said the government’s broader economic transformation agenda under Uraan Pakistan aims to strengthen exports, productivity, innovation, investment and human-resource development, with an ambition of achieving a $1 trillion economy by 2035.
But the challenge is considerably more complex: moving from exporting services to creating technology products that can compete and scale internationally.
From Freelancers to Global Technology Companies:
Pakistan has, indeed, a large and increasingly connected technology workforce, but much of its digital export activity remains concentrated in freelancing, outsourcing and traditional IT services. These activities generate valuable foreign exchange, but building internationally scalable technology companies requires a different ecosystem.
Product development demands investment in research and development, intellectual property, venture capital, experienced management, industry-ready engineers and access to international markets. Pakistan therefore needs to create conditions in which startups and established companies can develop products rather than primarily providing outsourced services.
The government’s focus on artificial intelligence, cybersecurity, cloud computing, semiconductors and advanced technologies reflects this changing ambition. The establishment of seven AI centres is intended to connect research, skills, startups and industry and potentially turn technological capabilities into commercially viable opportunities. Yet, the sustainable digital ecosystem is missing.
The Talent Challenge:
Notwithstanding, the most significant obstacle is not technology itself but human capital.
Federal IT Minister Shaza Fatima has recently highlighted concerns about the employability and industry readiness of Pakistani technology graduates. According to figures she shared, approximately 33,000 seventh- and eighth-semester computer science students participated in a national baseline assessment, with only 0.4% scoring above 80% and around 4% scoring above 68% across 10 employability competencies. These figures underline the gap between obtaining a technology degree and possessing the practical skills demanded by employers and technology companies.
Curricula, teaching methods and even the broader K-12 education system may therefore require significant improvement. Universities need stronger connections with industry, while students require greater exposure to practical software development, AI, cybersecurity, cloud technologies, product management and entrepreneurship.
Turning Connectivity into Competitiveness:
Pakistan’s geographical position could become an economic advantage, which needs to be explored. A stronger digital and physical connection with China, Central Asia and the Middle East could create opportunities for Pakistani technology companies to access regional markets. Ahsan Iqbal has argued that Pakistan must turn regional connectivity into regional competitiveness. CPEC 2.0 and Special Economic Zones could potentially facilitate technology partnerships, investment and market access.
For this to happen, digital trade infrastructure will be equally important. Integrated customs systems, electronic trade documentation, digital signatures and cross-border payment mechanisms can reduce friction for technology businesses operating across borders.
Dream or Reality:
Therefore, Pakistan’s transition from a service-oriented IT economy to a product-driven technology economy will not happen simply through higher export targets. It requires sustained investment in talent, research, infrastructure, financing, digital connectivity and international market access.
The dream is substantial, but so is the challenge. Pakistan has demonstrated that its workforce can earn billions through digital services. But whether the country can convert that capability into technology products, platforms and companies that originate in Pakistan and scale across the world, is a far-reaching reality.
By
Editorial, Infocus.pk
