Artificial intelligence (AI) is reshaping Pakistan’s technology job market, with demand for junior software developers and other entry-level technology positions declining by around 25%, according to industry data.
The shift comes even as Pakistan’s IT sector continues to expand. IT and telecom export remittances reached a record Rs. 1.2 trillion in fiscal year 2025-26, representing a 20.6% increase from the previous year.
According to the Pakistan Software Houses Association (P@SHA), hiring for entry-level positions at major technology companies has fallen by approximately 25%.
Employment among software developers aged 22 to 25 has also declined by nearly 20% since 2024, highlighting the growing pressure on young professionals entering the technology industry.
The impact is also being felt in the freelance market. Entry-level freelance projects have fallen from around 15% of total listings to below 9%, while basic writing and translation work declined by 32% year-on-year as businesses increasingly adopt AI-powered tools.
AI tools are increasingly capable of handling routine digital tasks that were traditionally assigned to junior workers. These include basic website development, app development, graphic design, content-related work and manual software testing.
As companies automate repetitive tasks, they are increasingly looking for professionals who can operate and integrate AI systems rather than perform tasks that AI can complete independently.
Demand is consequently growing for skills in AI engineering, cybersecurity, cloud computing, AI integration and advanced software development.
Federal Minister for Information Technology Shaza Fatima Khawaja has described the shift as a transition rather than simply a threat to employment.
She said the government’s National AI Policy 2025 aims to create 3 million AI-related jobs by 2030, supported by investment, training programmes and scholarships.
The government’s approach is focused on helping workers develop the ability to use AI tools and adapt to changing workplace requirements.
Several technology companies have already started adjusting their recruitment strategies as AI improves productivity.
Some firms report that AI has reduced their need for delivery-focused and junior coding roles, allowing existing employees to complete more projects with the assistance of AI-powered tools.
Other companies are increasingly prioritizing experienced professionals who can work effectively alongside AI systems, rather than hiring large numbers of entry-level developers.
The development suggests that while AI may reduce opportunities for some traditional junior roles, Pakistan’s expanding technology sector could see stronger demand for workers with advanced technical, analytical and AI-related skills.
