By 2017, Pakistan’s information technology (IT) export sector had become one of the country’s most promising areas of economic growth. The sector had steadily grown over the past decade, supported by the increasing global demand for digital services and the emergence of a tech-savvy young population at home. According to the Pakistan Software Export Board (PSEB), IT and IT-enabled services (ITeS) exports were estimated at over $2.8 billion in 2017, including both formal and informal channels.

The primary contributors to export growth were software development, business process outsourcing (BPO), and freelance services. Pakistan had established a solid reputation on platforms like Upwork and Fiverr, where tens of thousands of Pakistani freelancers offered programming, graphic design, and digital marketing services. A 2017 Payoneer Global Freelancer Index placed Pakistan among the top five freelancing nations worldwide.

Large companies such as Systems Ltd., NetSol Technologies, and TRG Pakistan continued to expand their global footprints, with offices in the US, UK, and the Middle East. These firms provided enterprise-grade software solutions, business analytics, and IT consulting services. Smaller firms clustered around IT parks in Lahore, Karachi, and Islamabad, benefiting from tax incentives and government programs under the Technology Park Development Project.

The government, through the Ministry of IT and Telecommunication and PSEB, aimed to reach $5 billion in IT exports by 2020. Initiatives like the Technology Incubation Center at NUST and Ignite’s startup funding grants reflected public sector efforts to foster innovation. Still, challenges remained — especially limited ease of doing business, weak intellectual property enforcement, and inconsistent broadband infrastructure.

Moreover, many startups and export-focused IT firms cited difficulties with cross-border payments and the repatriation of earnings. International clients were often hesitant to engage with Pakistani vendors due to perceptions of political instability and compliance concerns with financial regulations. These issues contributed to a preference for informal or underreported revenue channels, masking the sector’s true size.

Yet, optimism prevailed in 2017. Pakistan’s digital skills base was expanding rapidly, with coding bootcamps, tech incubators, and university programs in software engineering growing in number. Private sector players such as 10Pearls, Arbisoft, and VentureDive were proving that globally competitive products and services could be built from Pakistan. These success stories encouraged talent retention and reversed some of the brain drain to Western markets.

References:

[1] Pakistan Software Export Board (PSEB), Annual Report 2017. https://pseb.org.pk

[2] Payoneer Freelancer Income Report 2017. https://blog.payoneer.com

[3] Ignite National Technology Fund – Annual Highlights 2017. https://ignite.org.pk