Pakistan’s technology sector achieved remarkable milestones in 2024, showcasing its rapid growth and global potential. From soaring IT exports to pioneering fintech innovations, the country continues to make strides in shaping its digital future. Here’s a roundup of the top tech highlights from the year:
Top Tech Moments for Pakistan
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Surge in IT Exports
IT services exports from Pakistan have registered a phenomenal growth to $286.395 million in July 2024 against $213.73 million in July 2023, thus increase of 33.84 percent.
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Recognition as ‘Tech Destination of the Year
At GITEX Global Technology Week, Pakistan received the ‘Tech Destination of the Year’ award which is a reflection of the growth of the IT industry in Pakistan and its recognition as a new emerging technology hub.
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Launch of Paksat-MM1R Satellite
The successful launch of the Paksat-MM1R satellite marked a pivotal moment in Pakistan’s space program, enhancing communication capabilities and establishing a stronger presence in space technology.
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Digital Infrastructure Expansion
Key milestones in the digital public infrastructure of the country encompass the launch of a unified digital health records system across the country as well as the implementation of a blockchain-based system to manage the land registry.
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Forbes Asia 100 To Watch
NayaPay, which is an Fintech startup, and DealCart, which is an E-commerce startup, both from Pakistan made it to the Forbes 100 to Watch list, which shows the innovation in the Fintech and E-commerce sectors while raising considerable international funding.
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Growth of Fintech Sector
The fintech landscape flourished with new players entering the market. Firms that include Cerisma and Neem Financial introduced services from e-money wallet to earned wage access. Fintech operators also grew more mobile, and ABHI for instance, bought a microfinance bank in a foreign country.
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Software Market Growth
The software market in Pakistan is expected to reach $1682 million by 2029 rising at a rate of 13.97% between 2024 and 2029 which proves the strong growth of technology sector. This is due to increase in demand and the rapid increase in the growth of technology oriented industries in Pakistan. This reflects a surge in demand and the robust growth of tech-based industries in Pakistan.
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Singapore Fintech Festival
For the first time 10 companies of Pakistan exhibited in Singapore Fintech festival which gave them exposure to foreign investment. ABHI’s CEO was a featured speaker, and Hakeem Tech won a prestigious cash award.
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Fintech Mergers and Acquisitions
ABHI became the first Pakistani fintech operator to acquire a foreign microfinance bank, FINCA Microfinance Bank, in collaboration with TPL Corporation. Finja, a pioneering fintech company, exited the market by selling its operations to OPay.
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Arrival of New Fintech Players
Four new fintech operators, including Cerisma (a PSO subsidiary), Toko Lab, EduFi, and Neem Exponential Financial Services, launched innovative financial services, highlighting growth and diversification in the fintech sector is growing and diversifying.
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Challenges in Internet Regulation
The implementation of a national internet firewall raised concerns, with the Pakistan Software Houses Association warning of potential economic losses up to $300 million, highlighting the need for balancing security measures with economic interests.
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ITCN Asia 2024 Success
The ITCN Asia 2024, Pakistan’s largest IT festival, generated an estimated $500 million economic impact, showcasing the nation’s technological advancements to a global audience.
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Investment in ICT Infrastructure
The Pakistan ICT market was valued at $15.05 billion in 2023 and is expected to grow at a CAGR of 1.87% to reach $16.51 billion by 2028, reflecting ongoing investments in information and communication technology infrastructure.
With significant achievements including increased IT exports, global recognition, and the introduction of cutting-edge digital infrastructures, 2024 was a turning point for Pakistan’s IT industry. However, challenges like internet infrastructure issues still hinder growth, and improving this sector could accelerate Pakistan’s potential to further elevate its tech industry.
