Gilgit-Baltistan’s IT Sector Generates Up to $18 Million: PASHA

Gilgit-Baltistan (GB) is emerging as one of Pakistan’s most promising regions in the technology sector, generating an estimated $15 million to $18 million in annual IT revenues, according to a new study released by the Pakistan IT industry association, PASHA. The Gilgit-Baltistan IT & IT-Enabled Sector Diagnostic Report states that around 120 active IT companies in the region produce roughly $3.5 million, while 3,000 to 4,000 freelancers earn between $10 million and $15 million each year. Despite this growth, experts say revenue levels remain modest because of limited market access, small project sizes, and early-stage business development. Most tech firms in GB are small, often with fewer than 50 employees, and many professionals work as freelancers or gig workers. This makes the ecosystem active but not yet at the scale seen in larger Pakistani cities. The report notes that GB’s tech industry continues to generate relatively low revenues due to challenges such as restricted market access, limited project opportunities, and the early stage of business development. Many local firms provide services like software development, web design, and basic IT solutions, often for clients outside the region. Because the local market is small, mainly driven by agriculture, tourism, and public-sector jobs, most IT companies seek clients in major Pakistani cities or overseas. A snapshot of the sector shows a small number of formally registered IT companies in GB’s main urban areas, along with a larger number of freelancers and informal teams. Around 68% of GB’s IT companies are based in Gilgit district, the region’s main tech hub. Others operate in Skardu, Hunza, and other districts where tech communities are gradually growing. Overall, the GB IT/ITeS sector remains small but shows steady progress. About 300 companies are registered with the Securities and Exchange Commission of Pakistan (SECP), but only 100–120 are believed to be active. The total tech workforce is estimated at 6,000–7,000 people, including freelancers and company employees. Unreliable electricity and limited high-speed internet remain the biggest problems for local IT firms. Nearly 88% of companies report disruptions from power outages, while unstable broadband connectivity affects daily operations. These issues highlight the need for urgent improvements to power and telecom infrastructure. Access to funding is also extremely limited. With no local venture capital investors, most firms rely on personal savings or small grants, while traditional bank financing is hard to obtain. Although government support is increasing, it is still in early stages, with recent public development budgets beginning to allocate funds for IT-related initiatives. GB’s tech firms also struggle to reach bigger markets. Many companies are small and rely heavily on remote work. According to PASHA’s survey: Regulatory and logistical hurdles further slow growth. These issues point to the need for targeted support such as marketing assistance, participation in trade fairs, and business accelerator programs. The study highlights major opportunities to accelerate growth, build stronger tech clusters, and develop larger IT enterprises in the region. GB’s IT companies stress the need to integrate with national and international markets, including participation in trade delegations, subsidized access to global tech expos, and inclusion in Pakistan’s IT export promotion efforts. Stakeholders believe the right incentives could attract major investments. One key proposal is the creation of an IT Special Economic Zone (SEZ) in GB to support sector development. PASHA Senior Vice Chairman Muhammad Umair Nizam said the region’s annual IT revenues could rise from $15 million to $30 million within the next two years, given its strong growth potential. The Ministry of IT and Telecommunication, working with the Special Investment Facilitation Council (SIFC) and PASHA, has designed plans to integrate GB’s IT sector into the national ecosystem, especially by addressing challenges related to electricity and internet connectivity. PASHA recently held its first-ever CXO Meetup in GB in partnership with the Gilgit Baltistan Software Houses Association (GBSHA). The event brought together policymakers, innovators, and the tech community to discuss collaboration, growth, and regional inclusion. PASHA also plans to open a new office in GB, which could mark a major milestone for the local tech industry. GB is expected to remain a priority for both the government and Pakistan’s IT sector. Local companies and startups will also be showcased at the upcoming ITCN Asia in Lahore, where a dedicated “Made in GB” pavilion will highlight their work, he added.