The tech dream: Pakistan urgently needs a strategic roadmap for the IT sector

With a talented workforce ready to innovate, Pakistan's IT sector could redefine its economic narrative, but strategic reform is crucial.

Pakistan’s IT sector came into the spotlight recently amid internet slowdowns and disruption in cellular services. While the usual rhetoric from official quarters has sought to pacify concerns, it’s clear that the sector has long been in need of attention. Let’s take a closer look at the situation.

Pakistan’s information technology and IT-enabled services (ITeS) export remittances hit an all-time high of $3.223 billion in fiscal year, 2023-24. This is a phenomenal 24 per cent growth year-on-year and especially noteworthy considering that the country’s policies have yet to fully embrace the sector’s potential.

While the achievement must be applauded, it also underscores an urgent need for a strategic roadmap for the IT sector, alongside the development of essential infrastructure.

A roadmap

Imagine a Pakistan where its economic troubles start to fade away, as the IT sector emerges as the backbone of dollar inflows. A country once weighed down by economic hardship stands tall as its tech-driven exports bring in much-needed foreign exchange. The innovation of its young minds and the strength of its digital workforce turn the wheels of prosperity, transforming challenges into opportunities.

Sounds like a far-fetched dream? It doesn’t have to be.

With Pakistan’s population growing at an annual rate of 2.55pc, its food, energy production and talent will need more attention. To meet these demands, the country needs dollars — but here’s the catch: it must be non-debt-creating foreign exchange. We’re already drowning in debt, and piling on more would only tighten the noose.

Here is where IT exports step in. The sector — the freelancing community, software companies, and the broader technology industry — has been steadily expanding in recent times. Sure, there have been murmurs of a slowdown, but the sector’s potential as an economic powerhouse is undeniable.

As a tech entrepreneur, I’ve seen the raw talent that Pakistan’s youth possesses, but it needs to be harnessed meaningfully. While the youth equip themselves with IT skills learnt online through either YouTube videos or other learning platforms, they often fall short when it comes to closing deals, securing gigs and positive reviews that lead to meaningful earnings.

For example, the number of Pakistani freelancers who have less that 50 reviews on platforms such as Fiverr and Upwork is higher than those who have greater than 50. Consequently, there is an earnings’ disparity.

Another issue is the gap between the IT sector’s academia and industry. Since the pace of change in the tech sector is exponentially increasing, this gap is bound to grow unless remedial steps are taken right away.

Simple soultions

There’s hope on the horizon, though. With India slowly turning expensive for the West, Pakistan’s freelance market stands on the brink of massive opportunity.

But there is a long way to go. Pakistan’s freelancers’ contribution to overall GDP still stands at a paltry 0.4pc — a far cry from the global average of 1.7pc. Given Pakistan’s need for dollars, we should be aiming to outpace that average, not fall behind it. It is possible. A key to unlocking this potential lies in embracing gender inclusivity to increase women’s participation as it could significantly boost the country’s progress.

Bear in mind, high taxes are also a problem. They’re not just pinching pockets — they’re pushing Pakistan’s brightest computer science graduates away from IT firms. Instead, many are choosing the freedom of freelancing, drawn by the promise of higher pay and fewer financial burdens.

The fix? A policy overhaul that promotes both IT firms and freelancers to drive up exports. But again, that’s just one piece of the puzzle.

In a study we conducted, we found that even top graduates and IT engineers from CS programmes are missing the mark when it comes to soft skills. The lack of these skills hinders their growth because they are unable to communicate in an environment where teamwork is key. Their communication skills are found wanting, taking the focus off their technical abilities as well.

Imagine reaching out to an IT professional who, despite having the technical chops, struggles to convey the solution. Sound familiar?

The crux of the issue often lies in interpersonal finesse. Soft skills are essential across the board, yet they’re often overlooked in academic coursework. And that needs to change.

The future relies on innovation

As the IT sector in Pakistan expands rapidly, the need to cultivate these skills among professionals becomes increasingly critical. This is a golden opportunity waiting to be seized. Empowering individuals to engage in meaningful conversations, boosting their confidence at networking events, and equipping them with the tools to effectively sell their ideas and skills can yield unprecedented growth and innovation.

This is where the IT ministry needs to take the lead. None of this can happen until an institutional effort is made. Policymakers must champion initiatives that help establish linkages between academia and industry.

Despite a flood of IT graduates, many struggle with employability as they lack modern training and critical thinking skills needed to thrive in today’s fast-paced digital economy. It’s time to dismantle the outdated education models that rely on rote memorisation. Instead, collaborate with industry experts to create a dynamic, creativity-focused curriculum that nurtures innovation. Most importantly, reliable internet access and a robust IT infrastructure are non-negotiable for supporting remote operations, particularly in sectors reliant on work-from-home and online learning.

If Pakistan is to harness its full potential, a concerted effort to bridge these gaps is imperative. Only through collaborative partnerships and a commitment to fostering a reliable digital landscape can the country transform its IT sector into a powerhouse that not only competes on the global stage but also drives socio-economic progress for generations to come.

The future of Pakistan’s IT industry hangs in the balance, and with it, the hopes of a thriving digital economy.