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Pakistan’s technology industry continues to evolve at a rapid pace, showing both strong performance in mobile app usage and concerning declines in domestic development activity. As of October 2025, early indicators suggest ongoing momentum in IT exports and emerging technologies, even as the full-year app launch data remains pending. The trends underline Pakistan’s dynamic yet uneven digital transformation amid persistent economic constraints.
A Developer Ecosystem in Transition
In 2024, Pakistan recorded the launch of 1,053 mobile applications: 764 on Android and 289 on iOS. Despite this achievement, the number of active app developers contracted sharply by 26% to around 1,400, while Android app production plummeted 55%, the lowest level in five years.
This slowdown reflects macroeconomic pressures and shifting market conditions. However, usage metrics tell a different story: app downloads surged to 3.56 billion, a 9.2% year-on-year increase, positioning Pakistan ninth globally. Total app engagement soared to 79.1 billion hours, up 14.1%, the fastest growth rate among comparable emerging markets.
For 2025, projections indicate rising demand for developers skilled in artificial intelligence, blockchain, machine learning, and 5G technologies. International collaborations with Google, Microsoft, and Huawei continue to provide mentorship, cloud access, and monetization opportunities, even as Microsoft wound down its direct operations in Pakistan in mid-2025.
Innovation Hotspots and Category Leaders
Fintech, healthtech, education, e-commerce, and entertainment remain Pakistan’s most active app development categories. A growing focus on AI-driven, low-data solutions reflects an emphasis on accessibility for rural users. Lahore, Karachi, and Islamabad continue to dominate the tech map, while emerging hubs like Peshawar and Faisalabad are increasingly contributing through gaming and utility applications.
The rise of digital payment and finance apps aligns closely with Pakistan’s mobile-first economy and expanding fintech adoption, signaling a maturing innovation ecosystem.
Policy Push and Digital Reforms
The Ministry of Information Technology and Telecommunication (MoITT) remains at the forefront of fostering innovation through national programs such as Tech Destination Pakistan and Ignite National Technology Fund. These initiatives support the government’s Digital Pakistan Vision, which seeks to strengthen entrepreneurship and enhance digital literacy.
Programs like the Pakistan Startup Fund and national coding bootcamps are designed to inject new life into the ecosystem by supporting early-stage founders and technical talent. Speaking at GITEX Global 2025, Federal IT Minister Shaza Fatima Khawaja reiterated that youth-led innovation will be central to Pakistan’s economic resilience, noting that the recent introduction of Urdu for Meta AI aligns with the Prime Minister’s “Digital Nation Vision.”
Regional Position and Economic Outlook
Pakistan’s technology sector, currently valued at approximately $3.5 billion, continues to trail behind regional giants such as India ($250 billion). However, progress is evident: IT exports reached a record $366 million in September 2025, while the broader IT services market is projected to hit $2.75 billion by the end of the year.
The country ranked 93rd in the Global Innovation Index 2025, reflecting gradual improvement despite a mixed digital landscape.
Analysts suggest that with sustained policy execution and increased investor confidence, Pakistan could strengthen its position in AI, gaming, and software exports by 2026.
