Pakistan IT exports climbed to a record $4.6 billion in fiscal year 2025-26, reflecting substantial expansion across digital service receipts tracked by the State Bank of Pakistan. However, this macro-level revenue surge coincides with a structural contraction in entry-level hiring across major domestic software houses. As artificial intelligence automates routine coding and support functions, the Pakistani technology sector faces a complex transition that rewards specialized expertise while displacing junior practitioners.
By SarmayaNext Technology Desk • ✓ Fact-Checked • Published September 2026
What Are the Trends Behind Pakistan IT Exports and AI Layoffs?
Pakistan IT exports reached $4.6 billion in FY2025-26, up from $3.814 billion in FY2024-25. Despite this revenue growth, the integration of artificial intelligence has triggered a 25 percent decline in entry-level hiring at major technology firms, as routine coding and translation tasks face automation.
Pakistan’s IT and IT-enabled services receipts climbed to $4.6 billion in fiscal year 2025-26, according to data from the State Bank of Pakistan. This marks a notable increase from the $3.814 billion recorded in fiscal year 2024-25. The rise demonstrates sustained international demand for Pakistani digital outsourcing, software development, and freelance technical services.
Concurrently, the domestic technology sector is experiencing significant labor market adjustments. According to reports from the Pakistan Software Houses Association (P@SHA), entry-level hiring at major technology firms has declined by approximately 25 percent. Furthermore, employment figures among software developers aged 22 to 25 have dropped nearly 20 percent since 2024. In addition, basic writing and translation work across digital platforms has decreased by 32 percent year-on-year.
Pakistan IT Export Performance & Employment Metrics
| Metric | Period / Status | Source / Attribution |
|---|---|---|
| IT & IT-Enabled Services Receipts ($4.6 Billion) | FY2025-26 | State Bank of Pakistan |
| IT & IT-Enabled Services Receipts ($3.814 Billion) | FY2024-25 | State Bank of Pakistan |
| Entry-Level Hiring Decline (~25%) | Current | Pakistan Software Houses Association |
| Developer Employment Drop, Ages 22-25 (~20%) | Since 2024 | Pakistan Software Houses Association |
| Basic Writing & Translation Work Decline (32%) | Year-on-Year | Reported Market Data |
How AI Automation Is Restructuring Pakistan’s Tech Employment
The coexistence of rising export revenues and contracting entry-level employment highlights a structural paradox in Pakistan’s digital economy. As Syed Azfar Hussain, Project Director at the National Incubation Center Karachi, explains, artificial intelligence is taking over many routine coding and support tasks, reducing the need for large teams performing basic execution work.
For investors and software executives, this shift signals that top-line revenue growth is increasingly driven by high-margin, specialized technical delivery rather than headcount expansion. Companies are leveraging automated tools to handle tasks previously assigned to junior personnel, boosting operational efficiency per employee while narrowing the entry corridor for fresh graduates entering the local technology market.
This evolution demands strategic adjustments from educational institutions, policymakers, and aspiring developers across Pakistan. Preparing the workforce for high-value specializations—such as advanced software architecture, AI model integration, and complex systems engineering—remains essential for sustaining export momentum without leaving early-career professionals behind.
Calculate net annual dividend yields, tax deductions, and portfolio returns on Pakistani equities with the PSX Dividend Yield & Investment Return Calculator.
Key Takeaways
- Pakistan IT and IT-enabled services receipts reached $4.6 billion in FY2025-26, up from $3.814 billion in FY2024-25.
- Entry-level hiring at major technology firms is down by approximately 25 percent according to P@SHA.
- Employment among developers aged 22 to 25 has fallen nearly 20 percent since 2024.
- Basic writing and translation work has decreased by 32 percent year-on-year due to generative automation.
The Insider Take
Industry analysts note that traditional outsourcing models relying heavily on junior-level headcount arbitrage are facing severe margin pressures from AI tools. Firms that successfully transition toward proprietary product development and complex AI implementation are capturing higher export receipts with leaner teams.
Frequently Asked Questions About pakistan it exports
What were Pakistan IT exports in FY2025-26?
Pakistan IT and IT-enabled services receipts climbed to $4.6 billion in fiscal year 2025-26, showing an increase from $3.814 billion in fiscal year 2024-25 according to State Bank of Pakistan data.
How is AI impacting entry-level tech jobs in Pakistan?
The integration of artificial intelligence has led to a 25 percent decline in entry-level hiring at major technology firms. Employment among developers aged 22 to 25 has also fallen nearly 20 percent since 2024 as routine tasks are automated.
Which organizations track Pakistan IT export receipts?
The State Bank of Pakistan tracks official IT and IT-enabled services export receipts, while industry bodies like the Pakistan Software Houses Association monitor employment and labor market trends within domestic tech firms.
“At first glance, it may seem contradictory that Pakistan’s IT exports are growing while software companies are laying people off. But both trends are happening because the industry is going through a major transformation. AI is taking over many routine coding and support tasks, so companies no longer need as many people for the same work.” — Syed Azfar Hussain
- Unknown
- Brecorder
PS: For educational and informational purposes only. Technology specifications and availability are subject to regional rollout and device compatibility.