Karachi, Pakistan: The IT sector of Pakistan is experiencing a significant growth with exports reaching US$286 million in July 2024, and the Arabian Gulf countries are the major beneficiary of the country’s IT talent.
While Pakistan has been declared the “Tech Destination of the Year” at GITEX GLOBAL 2024, one of the key players driving this growth is the Pakistan Software Houses Association (P@SHA)
In a recent interview with TRENDS on the sidelines of the ITCN Asia 2024 event in Karachi, P@SHA’s Chairman, Muhammad Zohaib Khan, and Director of Industry Engagement, Ayesha Ahmad, highlighted the factors contributing to this recognition, further explaining their collaboration with the GCC.
Their insights suggest that a combination of government support, skilled talent, and a conducive business environment has fueled this growth.
The voice of the IT industry
“P@SHA serves as the voice of the IT industry, representing over 1,600 registered companies. We’ve actively participated in various events across the GCC, including LEAP in Saudi Arabia and GITEX in Dubai. Our member companies, spanning various sectors including fintech and edtech, join us at these events, during which many have established partnerships and secured deals, with several more in the pipeline,” Ms. Ayesha Ahmad explained.
Pakistani software and IT companies have signed several deals with leading firms in Saudi Arabia and other countries, particularly during their participation in major tech events.
“Pakistan’s consistent participation in major events like GITEX and LEAP has played a key role in earning this recognition. Over the last two years, the Ministry of IT and the Pakistan Software Export Board have worked diligently to support the industry, including subsidizing IT companies and sponsoring the GITEX Connection Pavilion. The pavilion has become a central hub for international B2B meetings, with ministers and industry leaders engaging in discussions that drive significant collaborations. This government support and our industry’s robust performance have positioned Pakistan as a top tech destination on the global stage,” Mr. Muhammad Zohaib Khan, Chairman of P@SHA told TRENDS.
Upskilling and exporting talent
It is undeniable that digitally upskilling talent in various industries is a global necessity, especially in IT. The OECD has found that countries with a higher percentage of digitally skilled workers tend to have higher productivity rates and economic growth.
“The IT industry is vast, covering areas like marketing, AI, and cybersecurity. By gaining market insights from GCC countries, we can better train our talent while offering cost-effective solutions. We continuously gather input from industry leaders and conduct research during our delegations to various events to understand their requirements and explore potential business opportunities for Pakistani companies. P@SHA also organizes online webinars where representatives from specific countries present their needs, allowing Pakistani companies to connect and collaborate,” Ms. Ahmad said.
“We recently completed the Tech Lift project, which trained 6,000 university graduates to meet industry demands. We’re now in the second phase of the Tech Lift project, aiming to equip more students with the skills needed by the industry,” she continued.
However, as is the case in all industries, challenges remain.
“One of the key challenges for Pakistani companies looking to establish a presence in the Middle East is the language barrier. Some regions require a physical presence and a native representative to assist with communication. Embassies have been instrumental in offering cost-effective solutions for setting up offices and facilitating local resource acquisition. They help bridge the communication gap and support the establishment of new spaces,” Ms. Ahmad said.
Cybersecurity is also a global concern, especially for the IT industry, as global cybercrime costs are expected to grow and reach US$10.5 trillion annually by 2025. In Pakistan, both the public and private sectors are taking proactive measures.
“P@SHA has its own Cybersecurity Committee, chaired by a board member, and includes multiple cybersecurity experts. We’re collaborating with the National CERT team and planning awareness seminars, as awareness is crucial in preventing cyber threats. Many people aren’t aware of the risks—like downloading unsafe apps or using weak passwords—so our focus is on educating the public. We believe that cybersecurity awareness should start at the school level, as future conflicts are likely to be fought in the digital realm. By preparing our citizens now, we can better protect against future cyber threats,” Mr. Khan said.
Across the GCC, Pakistani companies provide software solutions across various sectors. For instance, in the banking and fintech industries in the GCC, there is significant demand for cybersecurity and AI-driven solutions, and Pakistan is ready to serve.
“For example, the National Payment Gateway of the UAE was developed by a Pakistani company, showcasing our strong presence in the Middle East. Additionally, the first code for Careem, a renowned ride-hailing service, was written in Pakistan. This project was handled by VentureDive, a Karachi-based company, further highlighting the significant contributions of Pakistani IT talent to the global market,” the P@SHA Chairman said.
This is where events showcasing local and regional IT talent, such as the ITCN tech event that took place in Karachi from August 27 until 29, are essential. They provide an opportunity to position Pakistan as a tech hub in the region.
“Over the last four years, we have intensified our efforts to amplify Pakistan’s global presence as a tech hub. ITCN Asia began 25 years ago, during the IT boom of 2001. Such events serve as a real-time academy for startups and young companies, providing them with invaluable experience in pitching to customers, generating leads, and closing deals—skills that you can’t learn in a traditional academic setting. These events also allow our IT companies to directly interact with potential customers, understand their pain points, and offer tailored digital solutions, particularly in sectors like textiles, garments, and engineering,” Mr. Khan noted.
An observer for the Digital Cooperation Organization (DCO)
“Pakistan, as a founding member of the Digital Cooperation Organization (DCO), is leading the Digital Foreign Direct Investment (DFDI) initiative. This initiative aims to create a one-stop digital platform for businesses across DCO member countries, facilitating easy and hassle-free registration, tax information, and bank account setup. The objective is to streamline the process for companies looking to invest in and operate within these 16 member countries, making it simpler to understand each country’s regulatory environment,” Mr. Khan said.
“Earlier this year, P@SHA was also selected as an observer for the DCO, allowing us to participate in key meetings and events, fostering collaboration with the organization’s Member States, particularly countries such as Saudi Arabia, the UAE, Bahrain, and Egypt,” Ms. Ahmad explained.
Overall, the country’s IT sector is set to continue its upward trajectory, as industry experts anticipate continued expansion and local stakeholders work on increasing international cooperation and talent export, especially within the GCC.
The DFDI event, a collaboration between Pakistan and the DCO, is set to take place in Islamabad in December 2024. This will be a significant milestone in fostering collaboration among these nations.