In a major development underscoring the growth of Pakistan’s technology sector, the total number of IT and IT-enabled Services (ITeS) companies registered with the Pakistan Software Export Board (PSEB) has reached 20,711, according to a statement by Shaza Fatima Khawaja, Minister for Information Technology and Telecommunication. This milestone highlights the scale and ongoing formalization of Pakistan’s digital economy, which continues to gain momentum on both domestic and global fronts.
The companies are spread across the country, but the data reveals an uneven regional distribution. Punjab leads with 10,745 registered companies, followed by Sindh with 6,352. The federal capital territory (ICT) accounts for 3,264 companies, while the remaining regions — Khyber Pakhtunkhwa (243), Balochistan (43), Gilgit-Baltistan (35), and Azad Jammu and Kashmir (29) — lag significantly behind. This concentration of companies in Punjab and Sindh indicates the dominance of these two provinces in terms of IT infrastructure, talent pool, and market accessibility.
The Pakistan Software Export Board, which operates as a guarantee limited company under the Ministry of IT & Telecommunication, plays a central role in promoting the export of IT and ITeS services. While registration with PSEB is mandatory only for call centers, it remains voluntary for other IT companies. However, many firms opt in to access a variety of benefits, including paid internships, professional certification programs, and subsidized international event participation.
One of the most attractive incentives for registered IT firms is the preferential tax treatment: companies registered with PSEB pay only 0.25 percent tax on their export income, compared to the standard 1 percent for non-registered entities. Despite this advantage, registration and its renewal are still not compulsory, and companies may legally operate without being listed with the Board. Minister Khawaja emphasized that PSEB is a service-oriented organization, designed to support and facilitate the industry rather than regulate or enforce compliance.
Highlighting the dynamic nature of Pakistan’s tech ecosystem, the Minister noted that technological innovation and market fluidity are key features of the industry. The sector regularly witnesses new startups entering the market while older entities pivot or exit, driven by emerging opportunities and global digital trends. This churn is not only natural but also a sign of a healthy, competitive ecosystem, she added.
Nevertheless, the geographical disparity in company registration underscores a critical need for regional IT development strategies, especially in underrepresented areas like Balochistan, Gilgit-Baltistan, and Azad Jammu and Kashmir. The government’s digital transformation agenda must prioritize equitable growth across provinces to ensure that the benefits of Pakistan’s expanding IT industry are shared more widely.
As Pakistan continues to strengthen its digital economy and expand its footprint in global tech markets, the growth in PSEB-registered companies serves as both a milestone and a call to action. The focus now shifts to supporting these companies through talent development, infrastructure expansion, and policy incentives—particularly in regions that remain on the periphery of the digital revolution.
