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Digital Growth Accelerates in Pakistan: IT Exports Hit $2.825B, Yet Startup Ecosystem Faces Capital Crunch

  • Pakistan's digital and technology sectors have shown significant growth in FY 2024-25, with IT exports reaching $2.825 billion, reflecting the country's strengthening digital economy.
  • The IT sector maintained the highest trade surplus among services, highlighting its importance in stabilizing Pakistan's external account.
  • While the startup ecosystem in Pakistan has made progress, challenges such as limited venture capital and underdeveloped infrastructure outside major cities persist.
  • Despite ambitions to integrate AI across various sectors, Pakistan's readiness, as per the IMF's AI Preparedness Index, shows deficiencies in infrastructure and skills development.

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