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Listed technology companies in Pakistan have massively outperformed the broader stock market, delivering 112% returns for investors over the past five years, according to a new report by KTrade Securities Limited on the sector’s performance.
The market capitalization of Pakistan’s listed tech firms grew from $480 million in 2020 to $1.04 billion in 2025, reflecting strong earnings growth and improved valuations. This surge translated into cumulative shareholder returns of 112% over the five-year period.
Systems Limited, the country’s largest IT services company, emerged as the sector’s standout performer. Investors in Systems generated annualized returns of 35% between 2020 and 2025, with the company consistently delivering growth that rivaled venture-type gains but at a lower risk.
Three-Year Comparison Highlights Tech’s Dominance
An investor who placed $100,000 in the top five listed tech companies three years ago would today hold a portfolio worth $426,000. By contrast, the same allocation in the top five Pakistan Stock Exchange (PSX) stocks would now stand at $288,000, while the broader KSE-100 Index would have grown to just $165,000. This performance highlights the widening gap between the technology sector and traditional equity benchmarks in Pakistan.
Analysts note that tech firms benefited from initially attractive valuations, unlike many venture capital-backed startups that raised funding at inflated multiples during the 2021–2022 boom. Publicly listed tech companies, on the other hand, delivered strong revenue and profit growth while compounding shareholder value at more sustainable levels.
With valuations for listed tech companies now significantly higher than a few years ago, experts believe public markets will remain attractive for profitable technology firms. The report suggests this trend could encourage more mature players to consider going public through listings on the Pakistan Stock Exchange (PSX).
The report concludes that public equities in Pakistan’s technology sector have been a far superior asset class compared to the venture capital space, offering stronger returns with lower risks.
