IT sector eyes window of opportunity
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IT companies appear to be optimistic about ramping up exports to various high-potential markets after the United States of America (USA)'s new administration announced new reciprocal tariffs in a vast array of countries.
The tariffs will scale up the burden of operational costs for exporters in a host of countries. The Trump administration, however, has yet to impose tariffs on the services sector, while the tech sector has also escaped the new policy.
Pakistan Software Houses Association (P@SHA) Senior Vice Chairman Muhammad Umair Nizam said the recent escalation in global tariffs is triggering a significant recalibration of global supply chains. This presents a unique window for Pakistan's IT industry to step forward as a credible, competitive, and stable outsourcing destination.
With the growing demand for de-risked, cost-effective outsourcing partners, Pakistan is exceptionally positionedoffering up to 70% cost savings compared to Western markets, a highly skilled tech workforce, and a vibrant startup ecosystem.
IT exports reached $2.8 billion by March 2025, marking a 23% year-on-year growth and reflecting the industry's resilience and capacity to scale. Monthly exports in March 2025 stood at approximately $348 million, continuing a consistent upward trend for the straight 18th month in a row.
This performance is no coincidenceit is backed by meaningful reforms and facilitation measures introduced by the Ministry of IT & Telecom (MoITT) and the Special Investment Facilitation Council (SIFC). From expanding permissible foreign currency retention limits to accelerating IT park development and streamlining policy for foreign investment, these efforts are enabling Pakistani IT firms to become globally competitive.
"I believe that the government should announce an out-of-the-box special package for the IT industry which would enable us to achieve accelerated growth by fully capitalising on this opportunity," he said.
With targeted branding, trade diplomacy, and ease-of-doing-business reforms, Pakistan can cross $5 billion in tech exports in the next 1824 months.
In this new global reality, Pakistan is not just an alternativeit is the smart choice for global enterprises seeking innovation, reliability, and value, Umair Nizam said.
Pakistan's IT exports are concentrated in the North American region. It is followed by European countries and the Middle East.
CEO Hexalyze Saad Shah said Pakistan makes space in the global markets due to the outcomes of the tariffs imposed on the countries.
It is because of the fact that Pakistan is considered to be one of the best and most affordable countries for outsourcing the IT business, he said.
Joint ventures of various companies from a large number of countries are the other options to acquire handsome business from a good number of clients.
When it comes to some useful initiatives, there is an urgent need for major tasks for enhancing penetration in certain markets to work on marketing and branding in different countries and build the capacity of human resources through training and education.
The government and IT representative bodies should collaborate with different training programmes of welfare organisations to prepare human resources in required fields.
With three months left in the financial year, it is expected the IT exports may settle in the range of $3.53.7 billion. Under the Uraan programme, the government sets an annual target of $10 billion in IT exports by the end of FY29.
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