Pakistan’s information technology exports remain overwhelmingly reliant on software services, while hardware development continues to make only a marginal contribution. Despite an overall IT export figure of $3.8 billion in the financial year 2024-2025, hardware consultancy services generated just $7.5 million, according to data from State Bank of Pakistan (SBP). This represents a 9.9% increase from $6.8 million in the previous fiscal year, yet the contribution is still negligible compared to the over $1.1 billion earned through software consultancy during the same period. Industry experts highlight that 99% of the country’s hardware needs, including desktops, laptops, printers, scanners, and data centre machines, are met through imports, underscoring the structural imbalance in the sector.
Industry stakeholders believe this dependency on imports exposes Pakistan’s IT sector to vulnerabilities and foreign exchange pressures. Khushnood Aftab, Convenor FPCCI on IT and Chairman Viper Group, emphasized that developing local assembly for computers, laptops, and accessories is vital to address domestic demand. He pointed out that the absence of a robust policy framework for IT hardware results in massive foreign exchange outflows each year. Aftab argued that Pakistan’s engineering and technical expertise, which has produced fighter jets, automobiles, and smartphones at competitive standards, can be harnessed to develop a thriving computer and laptop assembly sector if supported by the right policies. He noted that while the government recently approved an artificial intelligence policy, it failed to address hardware development, leaving a critical gap in the country’s technology roadmap.
Despite these challenges, a handful of manufacturers are already assembling computer systems and accessories in Pakistan. Their presence, Aftab said, demonstrates that the country has the capacity to scale up operations if policymakers prioritize the sector. He also suggested that encouraging IT assembly units of global brands to operate in Pakistan could create opportunities for knowledge transfer and skill development, particularly in smartphone manufacturing. Such initiatives could pave the way for “Made-in-Pakistan” devices to eventually enter export markets, reducing reliance on imports and enhancing the technology ecosystem.
The role of hardware also extends beyond personal computing devices, with increasing focus on servers and infrastructure for data centres. Mehwish Ali Khan, CEO of Datavault, highlighted that local manufacturing of data centre hardware is essential for meeting the rising demand for cloud and enterprise solutions. She stressed that indigenous production would also strengthen cybersecurity and data protection for strategic organizations and businesses operating in sensitive sectors. Khan urged that a policy framework supporting local assembly and manufacturing of IT hardware could not only attract foreign investment but also accelerate technology transfer, helping Pakistan build a stronger digital backbone. Industry experts agree that the lack of emphasis on hardware is a major weakness in the IT value chain and call for immediate steps by regulators and the ministry to promote local capability development.
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