The architecture of finance is being rewritten as Pakistan stands at an inflection point in its transition from a cash-based economy to a digital financial system. In little over a decade, paying, saving, borrowing, and investing have begun migrating from the bank branch and the cash counter to the mobile phone. A young population of more than 240 million, rising smartphone penetration, a sequence of ambitious regulatory reforms, and the rollout of national digital public infrastructure have made the country one of the more closely watched fintech stories in South Asia.

Pakistan’s digital payments have grown at remarkable speed. Retail payments reached 9.1 billion transactions worth PKR 612 trillion in FY 2025, and digital channels now account for 88% of retail transactions by volume, with mobile-app banking alone handling 6.2 billion transactions.

Pakistan Retail Payments Breakdown (FY 2025)

Source: Annual Payment Systems Review FY 2024-25, State Bank of Pakistan

At the centre of this shift is Raast, the SBP’s instant payment system, whose transaction volume has grown roughly 162-fold since 2022 at a CAGR of around 256%, reaching 1.28 billion transactions in 2025. User adoption has risen across every channel, with branchless-banking app users reaching 79.2 million and mobile-banking users 24.1 million.

Despite the growth in digital payments, cash continues to dominate by value, and Raast’s activity remains overwhelmingly person-to-person contributing 99% of volume and merchant payments remain very low. Even so, the prospect of digital payments fully replacing cash remains distant.

Pakistan’s position is best understood against comparable markets. The report benchmarks the country against India, Bangladesh, and Indonesia, the three economies that, alongside Pakistan, hold some of the world’s largest unbanked populations. On the most basic measure of inclusion, account ownership (aged 15+), Pakistan lags behind all three, at roughly 27% of adults against Bangladesh’s 43%, Indonesia’s 56% and India’s 89% — a gap that reflects how much of the rail-building is yet to convert into everyday use.

Key Segments in Fintech:

Opportunities:

Artificial intelligence can lower the cost of serving each customer through automated onboarding, fraud detection, and alternative-data credit scoring. Voice-based interfaces could bring finance within reach of the population that cannot easily read or write.

Cross-border remittances and stablecoins: Now backed with PVARA and Virtual Assets Act, blockchain-based settlement can offer near-instant, low-cost alternatives for remittances that accounted USD 38.3 billion in FY 2025.

Capital markets and WealthTech: Digital brokerages are resolving old barriers to entry issues by offering fully online onboarding, low minimum investments, and app-based trading aimed at a young, first-time investor base.

Recommendations:

The report maps recommendations gathered through interviews and review of secondary data.

For regulators: scale open banking from sandbox to a full consent-based data-sharing layer; centralise and modernise the fragmented capital-markets back-end so investors are onboarded at once across different entities; and issue clear guidance on ethical, transparent AI.

For industry: Work towards bringing innovation rather than waiting for regulator-led innovation as the regulator has provided the framework and infrastructure, i.e., Raast, now the industry should build compelling use cases. Invest continuously in fraud prevention and consumer awareness; and pair merchant rollout with hands-on training.

For government: close the rural connectivity gap; reduce cash gradually by slowing note printing rather than abruptly demonetising; and embed financial and digital literacy in school curricula.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

Global Other Business Services Trade

Globally, Classification 10, Other business services were the most exported services in the world with its exports reaching $2.1 trillion in 2024). The Classification 10, Other business services maintained a healthy 7.4% CAGR over the 10-year period (2015–2024), its growth surged to 8.0% during the 6-year period (2019–2024). The U.S.A. was the top exporter of Classification 10, Other business services in 2024, exporting a value of $263.9 billion and having a market share of 12.5%. Both the U.S.A. and the U.K. held about 23.6% of the global market share in 2024.

Pakistan’s Other Business Services Trade

Pakistan’s Classification 10, Other business services exports amounted to $1,573.0 million in 2024. Classification 10, Other business services were Pakistan’s second most exported commercial services in 2024. Classification 10, Other business services’ exports have shown a steady upward trajectory, growing from $1,340 million (FY20) to $1,693.5 million (FY25).

Pakistan’s Other Business Services Trade Scenario from FY20 to FY25

Source: SBP (2026 b)

Pakistan’s export market for Classification 10, Other business services is dominated by 4 countries which make up about 55.4% of the total share of Pakistan’s exports of Classification 10. China is Pakistan’s biggest import partner constituting 19.0% of Pakistan’s total Classification 10, Other business services imports.

Pakistan’s Accounting, Auditing, Bookkeeping and Tax Consulting Services

Pakistan’s accounting services market is a rapidly expanding sector driven by a high demand for BPO and strict regulatory compliances. Leveraging a tech-savvy and technically competent workforce, local firms offer global cost savings of up to 50% through IFRS-compliant services, bookkeeping, and tax preparation.

Within Pakistan’s Other Business Services exports, Accounting, Auditing, Bookkeeping, and Tax Consulting services generated approximately US$69.2 million in FY25, recording a 15.0% CAGR between FY20 and FY25. The sector also maintains a strong and persistent trade surplus, reflecting its potential as a source of foreign exchange earnings and higher-value services exports.

Accounting, Auditing, Bookkeeping and Tax Consulting Services Trade Scenario from FY20 to FY25

Source: SBP (2026 b)

Main Findings

Current Market Trends and Future Projections

Strong export growth driven by rising global demand; though continued success increasingly depends on expertise and quality rather than cost alone. Domestic market remains constrained by low fees and high taxes. Demand persists for entry-level finance services but job-ready talent is scarce. AI will automate routine functions, making higher-value advisory and compliance capabilities essential.

Human Capital and Talent Retention Challenges

Graduates lack practical skills, communication abilities, and tech familiarity. Visa restrictions hinder international service delivery. High personal income taxes push skilled professionals toward Gulf & and other markets.

Market Access, Visibility, and International Positioning Constraints

Marketing restrictions limit international visibility. Pakistan is perceived as a low-cost outsourcing hub rather than a quality services provider. Most business is generated through referrals and diaspora networks, making client acquisition difficult for new entrants.

Technology, Infrastructure, and Digital Competitiveness Constraints

Power and internet disruptions undermine client confidence. Weak data protection frameworks reduce international trust. Complex forex procedures and high software costs further limit competitiveness, particularly for SMEs.

Regulatory, Taxation, and Business Environment Challenges

Regulatory complexity discourages foreign investment. Major international accounting firms have exited the market. Fragmented provincial tax regimes and administrative burdens reduce competitiveness.

Weak Institutional Support and Commercial Facilitation

No unified export promotion body exists. Embassies and commercial missions provide limited support. Reliable sector data is absent, and the sector lacks recognition as a strategic export category.

Recommendations

Develop Human Capital and Retain Talent Modernize curricula through industry-academia collaboration, offer tax relief for employees in export-oriented firms, and create industry-led certification programs in bookkeeping, payroll, and compliance support.

Enhance International Market Access and Commercial Diplomacy Run targeted international branding campaigns, leverage embassies for business development, and prioritize expansion into Gulf, UK, Australia, and selected European markets.

Accelerate Technology Adoption and Digital Competitiveness Streamline forex procedures and subsidize professional software, promote AI and cloud adoption, and enact data protection and cybersecurity legislation.

Strengthen the Business Ecosystem Grow domestic demand for outsourced services, shift firms toward higher-value BPM and GCC models, and develop dedicated business services hubs with reliable infrastructure.

Improve the Regulatory and Business Environment Simplify and harmonize provincial tax regimes, streamline forex procedures, and address barriers that discourage international firms from operating in Pakistan.

Provide Institutional Support for Professional Services Recognize the sector as a standalone export category, establish a dedicated export promotion framework, and create a national professional services directory to connect firms with international clients.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

Pakistan’s agricultural marketing system is a complex but functional ecosystem that supports both rural livelihoods and national food supply. At its core are traditional wholesale markets (mandis), intermediaries such as commission agents (aarhtis) and aggregators, and a nascent layer of formal market institutions including warehouse receipt systems and exchange-based trading. While this system is resilient and solves critical problems such as liquidity access, market linkage, and informal enforcement, it also generates inefficiencies, including weak price transparency, inconsistent quality valuation, and limited risk management options for farmers.

Most farmers operate under constraints such as small volumes, lack of storage, and immediate cash needs, often tied to informal credit arrangements with intermediaries. As a result, their bargaining power is limited, and sales decisions are driven more by urgency than price optimization. In mandis, price discovery occurs through rapid, opaque bargaining rather than transparent mechanisms, leading to discrepancies between reported wholesale prices and actual farmer earnings. Intermediaries persist because they bundle essential services—credit, aggregation, logistics, and settlement—which are not yet adequately provided by formal systems.

Market dynamics vary significantly by crop type. Perishables, due to their time sensitivity and lack of cold storage, expose farmers to sharp price volatility and distress selling. In contrast, storable crops such as wheat and rice offer greater potential for improved outcomes through storage and delayed sales, especially when supported by financing mechanisms. Government policy plays a particularly strong role in staple markets like wheat, where procurement and stock management influence price expectations. However, recent shifts toward reduced public procurement and greater private sector participation require credible and stable policy frameworks to succeed.

Efforts to modernize the system have introduced tools such as Electronic Warehouse Receipts (EWRs), enabling farmers to store produce in accredited facilities and access bank financing using stored commodities as collateral. While promising, this formal layer remains limited in scale due to gaps in infrastructure, grading standardization, and financial inclusion.

Key structural challenges include weak price discovery, lack of standardized quality grading, widespread distress selling, reliance on intermediaries, and limited access to formal storage finance. Addressing these requires a phased and integrated reform approach. Priorities include improving transparency and infrastructure in mandis, establishing reliable grading and testing systems, scaling accredited warehousing, expanding EWR-based financing, and reducing policy uncertainty to encourage private investment.

Ultimately, modernization should focus on integrating, rather than replacing, existing systems by unbundling and upgrading the core functions currently performed by intermediaries. A gradual, commodity-specific approach—anchored in better storage, finance, and transparent price signals – can enhance farmer incomes, reduce volatility, and create a more efficient and resilient agricultural market system.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

Cold chain infrastructure is a critical missing link in Pakistan’s agricultural transformation. Agriculture contributes around 24% to GDP and employs 37% of the labour force, while livestock alone accounts for nearly 60% of agricultural GDP. Within this system, horticulture (fruits and vegetables) represents a strategically important but underdeveloped segment, with a market size of approximately USD 15 billion and strong export potential. Despite this scale, Pakistan continues to export low-value, raw commodities due to severe post-harvest inefficiencies and the absence of an integrated cold chain system.

Post-harvest losses (PHL) are the most significant constraint in the horticulture value chain. Estimates suggest that 30–40% of fruits and vegetables are lost annually, equivalent to $700 million to over $1 billion in economic value. Losses are especially severe for mangoes, kinnow, tomatoes, and potatoes, while dairy losses reach 15–20% of total production, amounting to 10–12 billion litres of milk wasted annually. These losses directly reduce farmer incomes, who typically capture only 15–20% of final retail value, and contribute to recurrent market gluts and distress sales. The absence of cold storage is therefore both a food security challenge and a structural driver of rural poverty.

Pakistan’s cold chain infrastructure remains highly underdeveloped. Total cold storage capacity is below 1 million tons against annual fruit and vegetable production of 13–14 million tons, resulting in coverage of less than 8%. Existing infrastructure is uneven and largely commodity-specific: potato-optimized cold rooms dominate, controlled atmosphere (CA) facilities are extremely limited, and farm-gate cold storage is virtually absent. Transport infrastructure is similarly weak, with minimal penetration of refrigerated trucks and heavy reliance on open transport systems that compromise product quality. Dairy cold chain coverage is also fragmented, with only around 5% of milk entering formal, temperature-controlled supply chains.

Three structural constraints explain persistent underinvestment. First, fragmented value chains prevent any single actor from capturing sufficient returns to justify cold chain investment. Second, cyclical price volatility discourages storage investment, as actors sell during high-price periods and avoid storage despite its long-term benefits. Third, investment patterns are geographically concentrated and imitation-driven, leading to clustering in a few commodities (notably potatoes) while high-value crops remain underserved. Policy failures, including ad hoc import responses and weak market coordination, further exacerbate volatility.

International evidence, particularly Morocco’s Plan Maroc Vert, demonstrates that coordinated public investment, aggregation mechanisms, and anchor buyers can successfully trigger private cold chain expansion. Pakistan’s own potato and dairy sectors confirm this dynamic, where integrated processors have enabled the development of functioning storage networks.

The brief proposes a National Cold Chain Development Program anchored by a dedicated financing facility, fiscal incentives, and geographically targeted agri-clusters. Priority interventions include farm-gate solar cold rooms, controlled atmosphere storage expansion, milk chilling coverage targets, and a demonstration CA facility for horticulture. Critically, the strategy emphasizes attracting anchor investors and enabling first-mover projects that can trigger wider private sector participation.

Cold chain investment is among the highest-return opportunities for Pakistan’s agricultural economy, with the potential to significantly reduce losses, stabilize prices, improve farmer incomes, and unlock export diversification.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

Pakistan’s agricultural sector, contributing 24% to GDP and employing 37% of the labour force, produces adequate quantities of major crops such as wheat, rice, and maize. However, recurring grain shortages, price volatility, and import dependence stem not from production shortfalls but from systemic inefficiencies in storage and distribution. Post-harvest losses exceed $1.3 billion annually, highlighting structural weaknesses that undermine food security, fiscal stability, and farmer incomes.

The storage ecosystem is fragmented and outdated. Around 60% of wheat is stored at the farm level using traditional methods such as jute bags, mud bins, and open-air ganjis, exposing grain to pests, moisture, and contamination. Public-sector storage, managed by PASSCO and provincial food departments, is both insufficient and deteriorating, with limited capacity for modern practices like temperature control and effective fumigation. While modern silo storage exists, it is largely confined to private processors and remains inaccessible to farmers and small traders.

A key structural inefficiency lies in the bag-based supply chain, where grain is repeatedly packed, unpacked, and transported. This leads to high handling costs and losses, estimated at $1.5 billion annually in Punjab alone. Transitioning to bulk handling and modern warehousing could reduce these costs by up to 65%, offering significant efficiency gains.

Smallholder farmers, who dominate the sector, bear the greatest burden. Lacking storage and access to finance, they are forced into distress sales immediately after harvest when prices are lowest. This dynamic shifts value to intermediaries, particularly aarhtis, who provide credit and storage at high implicit costs. The absence of formal storage and financing mechanisms limits farmers’ ability to benefit from price fluctuations.

Efforts to modernize the system through Electronic Warehouse Receipts (EWRs) present a viable solution. EWRs allow farmers to store produce in accredited facilities and access bank financing, reducing distress sales. Institutional progress, including PMEX’s acquisition of Naymat Collateral, has strengthened the link between commodity markets and storage. However, expansion remains constrained by regulatory risks, especially anti-hoarding laws, and the limited inclusion of wheat in the EWR system.

The shift from a government-led storage model to a market-based system has been uneven. Historically, public procurement under the minimum support price regime dominated but proved fiscally unsustainable. Its withdrawal, without a developed private storage market, has increased price instability. Proposed hybrid models involving private participation in strategic reserves have yet to materialize due to policy uncertainty.

Addressing the storage gap requires an estimated 7.9 million tons of commercial warehousing capacity. Reform priorities include expanding EWRs to wheat, leasing public storage to private operators, and integrating aarhtis into formal systems. Medium-term measures should focus on developing aggregation hubs with drying facilities, improving grading systems, and attracting large-scale private investment.

International experience, particularly India’s NBHC model, demonstrates that aligning commodity exchanges with warehouse receipt systems can drive rapid transformation. Pakistan has established foundational elements but requires stronger policy support, legal protections, and investment.

Ultimately, Pakistan’s storage challenge is institutional rather than technological. With the right policy framework and sustained commitment, a modern, efficient storage system can reduce losses, stabilize markets, and improve farmer welfare.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

Agricultural mechanization in Pakistan has grown over time but remains uneven, fragmented, and well below global benchmarks, limiting its contribution to productivity and farm incomes. With farm power at just 0.09 horsepower per acre – far below the recommended 1.4–1.8 hp – there is a clear structural deficit in mechanical capacity. While tractors are widely used and operations like land preparation and threshing are largely mechanized, key stages such as sowing, transplanting, and harvesting remain inefficient or manual in many areas. This partial mechanization constrains yields and contributes to significant post-harvest losses.

A major issue is the widespread use of outdated and poorly maintained machinery. Combine harvesters, often averaging around 40 years old, are typically imported near the end of their lifecycle and kept running through temporary fixes. Although this reduces upfront costs, it leads to inefficiencies, including grain losses of 10–15% in major crops like wheat and rice—equivalent to about USD 1.5 billion annually. The use of mismatched machinery, such as wheat combines for rice harvesting, further reduces quality and increases losses. Regional disparities also exist, with Punjab relatively more mechanized, while Sindh relies heavily on manual harvesting due to unsuitable soil conditions for heavy machinery.

Pakistan’s smallholder-dominated farm structure means most farmers cannot afford to own machinery and instead depend on rental services. These service providers are central to mechanization access but face challenges such as inconsistent demand, limited scale, and peak-season shortages. As a result, timely availability of machinery remains a persistent issue.

The mechanization ecosystem involves government programs, private suppliers, and development partners. Public initiatives, such as the successful promotion of laser land levelling in Punjab, show that targeted support and private sector engagement can drive adoption. However, weak standards, limited testing, and poor after-sales services continue to undermine equipment quality and reliability.

Several interconnected constraints hinder progress. High machinery costs, exchange rate volatility, and limited access to credit push farmers toward cheaper but inefficient equipment. Tax and duty structures further raise costs and discourage formalization. Additionally, shortages of skilled operators and mechanics, weak repair systems, and poor suitability of machines to local conditions reduce efficiency.

Going forward, the focus should shift from simply increasing machine numbers to building a reliable mechanization services ecosystem. Strengthening rental markets, promoting service hubs, improving standards, and enabling better access to finance are critical. Integrating mechanization with sustainability, particularly through better residue management, can also create economic value. Overall, a coordinated, system-wide approach is essential to unlock productivity gains and improve farmer incomes.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

However, this favorable trend is vulnerable to a structural fragility that this study has documented in detail. The growth is concentrated in the two service categories most sensitive to AI displacement. This is illustrated by the 41 percent drop in the median per-transaction value of freelance earnings between FY2021 and FY2025 (from USD 106 to USD 63) despite 114.6 percent growth in total freelance exports. The sector has an overwhelmingly micro-scale corporate base, with only 12 publicly listed IT companies out of 33,172 registered with SECP as of 31 December 2025 (0.04 percent). Out of an annual cohort size of approximately 43,000 IT graduates in Pakistan, only 10 to 12 percent are considered immediately employable without significant remediation, particularly to develop their soft skills. The regulatory, financial and infrastructural environment that would allow the sector to transition from price-arbitrage services to higher-value, AI-resilient capability centers is either absent or not functional in practice. This study identifies and discusses the constraints and suggests remedial action.

This study draws on: transaction-level SBP Balance of Payments data for FY2021–FY2025, the SECP database of registered IT companies; IGNITE programme data; HEC enrolment and graduate statistics, a structured survey of senior executives, stakeholder interviews and focus group discussions with freelancers, startups and captive office operators. The study identifies seven structural challenges and provides a set of policy responses, under the SCALE framework, designed to address them.

Sector Size, Structure and the Measurement Gap

Pakistan is a sizable global exporter of ICT services and the fastest-growing component of its own services export portfolio. The sector’s true size, however, is materially larger than official figures capture.

The SBP figure of USD 3.24 billion cannot be treated as a comprehensive measure but rather a base figure. Findings from this study indicate that actual IT-related earnings (including flows classified under personal remittance codes and revenues from foreign-registered Pakistani-founded firms) may be closer to USD 5 billion or more. The gap is not indicative of a coverage gap in total foreign exchange inflows but rather it suggests a classification issue within the Balance of Payments. This insight is extremely important for policy because currently, incentive programmes, PSEB registration benefits and sector-specific support are calibrated against the IT export classification rather than aggregate inflows.

 A critical analytical finding of this study is the structural composition of these exports. Freelance transactions constitute 90.8 percent of all recorded IT export entries (2.17 million of 2.39 million in FY2025) yet generate only 24.1 percent of total value[1].

The average software consultancy transaction is worth USD 12,618 while the average freelance transaction is worth USD 359 a ratio of approximately 35 to 1 by consultancy value, and 88 to 1 when compared against the average software export transaction of USD 31,699. The freelance distribution reveals an alarming dichotomy: 434,000 transactions (20 percent of the total) were below USD 18 each in FY2025, while the maximum recorded single transaction was USD 5.57 million. The average earnings floor for entry-level freelancers has shrunk significantly due to the proliferation of AI tools, while a small upper cohort of high-value practitioners captures disproportionate gains. The sector is stratifying and the distance between the two tiers is widening.

Seven Structural Constraints: Diagnosis

This study identifies seven interconnected challenges. These challenges do not exist in isolation and resolving any one of them without addressing foundational prerequisites has limited impact.

1. Human Capital: Quality, Leadership and the Talent Drain: Only 10 to 12 percent of Pakistan’s 43,000 annual IT graduates are immediately employable. The binding deficit is not technical capability but soft skills, professional conduct, client communication and reliability. No programme currently produces executives capable of scaling companies internationally, or cross-disciplinary profiles combining technology with domain expertise in finance, healthcare or legal services. Women represent only 21 percent of STP workers, and just 38,000 of 2.32 million registered freelancers with bank accounts are women, a growth capacity failure, not only an equity one.
2. Tax Architecture and Regulatory Design: The tax and banking architecture functions as a structural disincentive. No statutory distinction exists between a gig worker and a remote employee. FBR audit behavior treats legally exempt IT export income as contestable. Internet services carry a 34 percent effective tax. Import duties on laptops and cloud infrastructure taxes raise input costs on an export sector whose outputs are nominally incentivized.
3. Banking and Payments: The banking framework makes offshore retention the rational decision. There is no mechanism to hold dollar balances or accept card-based international payments through Pakistani banks. IT firms with stable USD revenues cannot access working capital because banks require physical collateral and do not accept software assets. FDI approval timelines exceed twelve months, and regulatory restrictions have resulted in the collapse of startup funding.
4. Ecosystem Gaps: Infrastructure and Data: Pakistan has only one to two Internet Exchange Points, making fixed broadband cost USD 0.53 per Mbps—6.6 times higher than India and 53 times higher than Romania. Pakistan’s ICT access index ranks 128th of 139 economies globally (WIPO GII, 2025). The Special Technology Zones Authority framework has been identified by board-level participants as the most prominent policy implementation failure in the sector’s recent history. Data fragmentation across SBP, SECP, PSEB, HEC and FBR compounds these gaps.
5. Products, Services, and Export Diversification: Pakistan’s export base is almost entirely cost-arbitrage services with no meaningful domestic product base. Government-owned IT entities develop software for government departments outside competitive procurement, displacing private firms from the contracts that serve as the capability-building and reference-deployment pathway to international markets. Pakistan is ranked 17th globally in mobile app downloads (1.42 billion in 2024) yet this segment is a blind spot in industry and policy. Space-tech, 5G-enabled services and semiconductor chip design remain unrecognized as export frontiers.
6. Country Brand and Market Access: Pakistan does not appear in Everest Group, Hackett Group or comparable IT delivery location assessments. It is not that it is evaluated and found inadequate, it is just not in the consideration set. Pakistan has very few captive ICT operations against India’s 1,700+, which generate USD 64.6 billion annually. Country-of-origin risk filters screen Pakistan out on political stability, cybersecurity posture and data protection grounds regardless of technical capability. Export concentration in the US and UK creates vulnerability to their policy shifts.
7. AI Transition: Displacement, Pricing Disruption, and Governance Vacuum: Pakistan faces two distinct AI challenges. First, workforce disruption: the sector is concentrated in staff augmentation and BPO, the categories most directly displaced by AI tools, and the 41 percent fall in median freelance transaction value is consistent with commoditization already underway. Second, an AI development failure: Pakistan has not built the compute infrastructure, data governance framework or regulatory environment to produce AI products. R&D expenditure stands at 0.16 percent of GDP (ranked 92nd globally). Failing on the first means losing the export base Pakistan has built; failing on the second means being permanently positioned as a consumer of AI rather than its producer.

What Needs to Be Done:

This study identifies 45 recommendations across seven challenge clusters, organized under the SCALE framework: Skills and Talent Pipeline Transformation, Captive and Corporate Attraction Strategy, Access to Markets and Finances, Legal and Regulatory and Digital Governance Reform, and Ecosystem and Startup Infrastructure. Recommendations are sequenced across three implementation horizons.

• Immediate Foundations (short-term): gazette a statutory freelancer definition; mandate SBP multi-currency receiving accounts; establish a 48-hour remittance processing standard; introduce IT Export Dollar Accounts; enact a statutory FBR safe harbour on exempt IT export income; launch a 5-year cross-party IT sector policy stability compact; deploy a dedicated captive attraction function engaging Everest, Hackett and Gartner; establish a Pakistan Startup Fund with a 30-day decision SLA; and create a 60-day FDI fast-track channel.
• Structural Reforms (medium-term): reform PPRA procurement to include an IT stream with a 25-percent SME quota; introduce a 20-percent domestic price preference for government IT procurement; phase government-owned IT entities out of commercial contracting; enact the Personal Data Protection Act and initiate the EU adequacy pathway; reduce internet effective tax from 34 percent to 10 percent or below; establish a Global Tech Landing Pad; reform university curricula with 30-percent industry co-design and mandatory practicums; and introduce per-hire grants of 15-percent salary reimbursement.
• Transformation Investments (long-term): develop a National AI Strategy with sovereign compute infrastructure; establish a Yozma-style matched VC fund (USD 200M); build six IXPs nationwide with an open-access fiber backbone; create chip design labs at NUST, GIKI, UET and NED; and develop the Pakistan Stack—an open digital identity layer, payment rail and public API framework to create domestic reference deployments that can be commercialized globally.

The data analysed for this study makes the strategic imperative clear. Pakistan has built a legitimate and growing IT export base under conditions that have constrained it at every stage. The sector’s next growth phase requires moving from informal and fragmented participation in global IT markets to structured, policy-enabled, high-value delivery before AI displacement and market-access barriers permanently foreclose that transition.

[1] This number represents bank remittance-receipts rather than distinct individuals, consistent with the official SBP methodological position. The 2.17 million counts therefore sets an upper bound, not a headcount of freelancers.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

This study has been undertaken as part of the Pakistan Business Council’s Make-in-Pakistan initiative, with the objective of identifying key constraints and opportunities within the domestic fan industry and proposing actionable recommendations to enhance its competitiveness. Conducted in close collaboration with the Engineering Development Board and the Pakistan Electric Fan Manufacturers Association, the report combines industry insights, stakeholder consultations, and data-driven analysis to provide a comprehensive assessment of the sector.

The findings highlight critical issues such as dependence on imported raw materials, gaps in skilled labor, tariff anomalies, limited access to international certifications, and underutilized production capacity. At the same time, the study underscores significant opportunities arising from growing domestic demand, increasing global need for energy-efficient cooling solutions, and substantial untapped export markets across Europe, Africa, and the Middle East.

A key message of this report is that Pakistan’s domestic fan industry has already demonstrated its capacity for technological adaptation through the successful localization and large-scale production of energy-efficient DC, BLDC, and inverter fans. Building on this achievement, the next phase of growth will depend on targeted policy support, improved institutional coordination, and strategic upgrades in areas such as raw material sourcing, skills development, testing and certification infrastructure, and market access. With these enablers in place, the industry is well-positioned to enhance its cost competitiveness and significantly expand its footprint in global markets.

It is hoped that this report will serve as a useful resource for policymakers, industry stakeholders, and development partners in shaping a more competitive, resilient, and export-oriented domestic fan industry in Pakistan.

The Study is part of the PBC’s SME outreach program in which it works in collaboration with the EDB & respective sector associations in the engineering sectors which have some export footprint. The major opportunities and challenges in export markets are identified and policy recommendations developed to help each sector achieve its export potential.

This study, analyzes the competitiveness of Pakistan’s aluminum utensils sector across the production, trade, and export value chains. The study evaluates market dynamics, the product mix, labor and raw material dependencies, and export potential in key international markets. It further seeks to identify structural and policy-related challenges faced by the industry and recommends measures to improve quality standards, promote technology upgradation, support SMEs, and facilitate a shift towards value-added and an export-oriented growth.

According to the All-Pakistan Aluminum Utensils Manufacturers Association (APAUMA), the total number of units engaged in the manufacture of aluminum utensils is estimated at between 500 & 600 with an annual production of 140,000 tons. The sector is estimated to provide employment to about 25,000 workers. Most units are medium to small sized with only a few units employing between 500 – 600 employees.

Top 10 Global Exporters of Aluminum Utensils

The global exports of aluminum utensils increased from $4.53 billion in 2015 to $6.40 billion in 2024, recording a CAGR of 0.04 percent during this period. China ranks first, with its exports rising from $2.32 billion in 2015 to $3.91 billion in 2024. Meanwhile, Pakistan was ranked 23rd, with exports increasing from $25.97 million in 2015 to $26.76 million in 2024.

Top Global Exporters of Aluminum Utensils

Opportunities for Enhancing Exports

Based on industry discussions and review of secondary data, the aluminum utensils sector in Pakistan presents several important opportunities, primarily driven by export presence, and unmet international demand for specialized aluminum utensil products.

• Current exports include aluminum cookware, anodized products, and metal-finished utensils.
• Key export markets are the UAE, Saudia Arabia, the UK, Belgium, France, the USA, Afghanistan, and some European countries.
• There is potential to expand into regional markets such as Bangladesh, Sri Lanka, and selected Central Asian countries.

Challenges

1. Limited Access to Technology and Finance:

Most firms lack affordable financing for machinery and automation, keeping production labor-intensive; reducing productivity, and leading to increasing quality inconsistencies. Manufacturers are also hesitant to use bank financing due to religious considerations and collateral issues. This limits access to support programs like the SBP’s TERF.

2. A Developing shortage of Skilled Labor:

The sector suffers from a growing shortage of skilled labor. Existing workers rely on outdated machinery and traditional methods, while younger workers avoid the physically demanding work, leading to a gradual loss of critical skills.

3. Limited Research & Development (R&D):

R&D receives minimal attention, with only 5–6% of manufacturers investing in innovation or monitoring global demand patterns. Most firms prioritize operational costs over product development, resulting in low innovation and reliance on copying large firms’ designs.

4. Weak Institutional Support and Service Delivery:

Despite contributions to social security schemes; healthcare and welfare services for workers remain inadequate, increasing operational costs and weakening trust between industry and government.

Recommendations

1. Enhancing Product Variety and Innovation: Industry needs to modify existing products and introduce advanced varieties of pressure cookers, anodized, and die-cast aluminum utensils to meet global demand for healthier and more durable products.

2. Encouraging Technological Upgradation: Promote automation in family-owned businesses, replace old machinery with environmentally friendly equipment, and improve production efficiency.

3. Promoting Export-Focused Growth: Focus on innovation aligned with international demand and increase the share of production dedicated to exports.

4. Limit Export of Recycled Aluminum Ingots: Restrict export of aluminum ingots in primary form to ensure availability for domestic manufacturers while allowing imports intended for re-export.

5. Upgrading Common Facility Centers (CFCs): Improve technology and machinery at CFCs, introduce circle-cutting facilities, and provide access to advanced tools for standardized production.

6. Skilled Labor Development: Establish vocational and technical training programs focused on modern production techniques, machinery operations, and safety standards.

7. Market Access and International Exhibitions: Support participation in TDAP and single-country exhibitions, organize B2B meetings, and provide guidance for visas and marketing in international markets.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

Global Importance of Midwives

The global Maternal Mortality Rate (MMR) fell from 391 to 197 per 100,000 live births (1990–2023), while the Neonatal Mortality Rate (NMR) dropped from 36.7 to 17.3 per 1,000. Studies show that midwives can prevent over 80% of maternal and neonatal deaths, with every $1 invested returning $16 in economic and social gains. Despite this, the world faces a shortage of about 980,000 midwives.

Key Global Statistics on Midwives as per 2025

Source: Midwives’ Data Hub (2025)

Midwifery in Pakistan

Pakistan has one of the highest NMRs globally (37.6) and an Infant Mortality Rate (IMR) of 50.1. Midwife density remains critically low at 0.7 per 10,000 population (2.2 when including CMWs, LHVs, and midwifery-trained nurses). Heavy reliance on legacy cadres, weak regulation, delayed International Confederation of Midwives (ICM) alignment, and limited clinical authority constrain the profession. Provincial disparities persist—Punjab shows MMR progress but remains a major contributor to NMR, while Balochistan faces stagnation. A rapidly widening shortage (3,100 in 2021 to 81,900 in 2024) reflects chronic underinvestment and weak workforce planning.

2023 Global Health Standings in Maternal and Child Health & Pakistan’s Position

Pakistan ranks among the highest-burden countries: 50th for MMR (155), 2nd for NMR (37.6), and 14th for IMR (50.1). These rankings highlight the urgent need to expand access to skilled midwifery care.

Major Findings

• High Prevalence of Missed Antenatal Care (ANC) Visits
  Many women miss ANC due to financial and decision-making barriers, reinforcing the need for accessible, community-based midwifery care.
• A Doctor-Centric and Costly System
  Dependence on physicians limits rural reach and undermines primary midwife-led models.
• Medicalization and Status-Driven Choices
  Urban families prefer doctor-led births for social status, reducing trust in midwives even for normal pregnancies.
• Rising C-Sections & Lower Physiological Birth Rates
  High elective C-section rates reflect systemic medicalization and weakened demand for safe midwife-led birth.
• Historical Nurse-Midwife Model Inefficiencies
  Dual training have produced nursing professionals who seldom practice midwifery, leading to skill dilution and resource wastage.
• Cadre Overlap & Community Confusion
  Blurred roles between CMWs, LHVs, and FWWs reduce clarity and weaken service delivery.
• Educational Misalignment with Global Standards
  Outdated curricula, weak assessments, and limited faculty reduce clinical competence and global mobility.
• Career Stagnation & Low Motivation
  Poor career progression, corruption in licensing , and inadequate pay tend to push midwives out of the profession.
• Marginalization and Mislabelling
  Midwives face disrespect and are often equated with dais, undermining professional identity.
• Weak Regulation & Lack of Representation
  PNMC reforms remain incomplete; midwives lack leadership presence and regulatory autonomy.
• Suspended Prescription Rights
  Without authority to administer essential drugs, midwives’ ability to manage emergencies is compromised.
• Legal Grey Areas in Clinical Practice
  Midwives frequently perform emergency tasks without legal protection or resources.
• Severe Shortages & Burnout
  High workloads and insufficient staffing compromise care quality.
• Governance and Leadership Gaps
  Nursing-dominated systems exclude midwives from decision-making and institutional leadership.
• Sanctioned Post & Title Disparities
  Midwifery posts remain disproportionately low within health facilities.
• Leadership Instability
  Lack of succession planning results in recurring leadership gaps.
• Abolished Community Midwives (CMW) Stipends
  Withdrawal of stipends has left thousands of CMWs without employment or community practice support.
• Balochistan Midwifery Crisis
  Licensing gaps, absence of posts, and weak deployment systems prevent effective service delivery.
• Donor Dependency & Exclusion from Policy
  Donor-funded programs overshadow structural government reforms, often sidelining midwives.
• Weak MAP Institutional Capacity
  MAP lacks permanent staff and stable funding to act as a national professional body.
• Fragmented NGO Efforts
  Uncoordinated NGO projects create duplication and unsustainable initiatives.
• Male Engagement & Three Delays
  Men’s influence on household decisions affects ANC attendance and emergency referrals.

Recommendations

Educational & Faculty Advancement

• Standardize 2-year associate and 4-year BSM programs to replace fragmented cadres.
• Launch master’s programs to build faculty and leadership capacity.
• Ensure training institutions partner with high-volume maternity facilities.
• Modernize curricula, textbooks, and assessments to reflect global competency standards.
• Recruit and strengthen specialist midwifery faculty through structured development programs.

Governance & Leadership Reform

• Create independent midwifery directorates for equal authority and budgeting.
• Implement structured mentorship and succession planning.
• Integrate donor efforts into government systems and strengthen midwifery data registries.
• Provide stable funding to MAP to function as a national voice for midwives.
• Improve donor accountability and alignment with midwifery priorities.

Regulatory & Legal Empowerment

• Immediately restore prescription rights by finalizing SOPs.
• Provide legal protection for midwives performing recognized BEmONC functions.
• Introduce emergency licensing measures for Balochistan.
• Ensure dedicated midwife seats in PNMC leadership.

Operational Sustainability & Professional Growth

• Convert donor-funded skills labs into permanent government facilities.
• Create clear, transparent career pathways and ensure appropriate deployment.
• Conduct national campaigns to differentiate midwives from dais and build public trust.
• Offer financial and safety incentives for midwives in remote regions.
• Strengthen monitoring systems to ensure adherence to training and quality standards.
• Expand male engagement programs to reduce the Three Delays.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100+) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. More information about the PBC, its members, objectives and activities can be found on its website: www.pbc.org.pk

Despite past capabilities and current technical talent, the electronics sector in Pakistan remains underdeveloped, fragmented, and uncompetitive. The paper argues that Pakistan must shift its focus from mainstream hardware manufacturing — where economies of scale and global dominance by players like China pose steep barriers — toward high-skill, IP-driven domains such as electronics design and embedded systems. The brief also highlights untapped opportunities in two-wheeler automotive electronics, residential power electronics, and EV-centric component design, where market alignment and existing capabilities can be leveraged with modest policy support.

The brief reviews the National Electronics Policy, the Pakistan National Semiconductor Plan (PNSP), and the Semiconductor Policy and Action Plan (SPAP), outlining how they envision state intervention in training, R&D, international collaboration, and strategic infrastructure. It also offers a comparative analysis of past global success cases — notably Taiwan and India — and recommends Pakistan adopt a tailored, design-first strategy rather than capital-intensive fabrication ventures.

Through a close examination of the automotive and consumer power electronics sectors, the brief identifies structural weaknesses — from lack of certification infrastructure and international market access to outdated production technologies and poor trade facilitation — and presents targeted, realistic solutions.

The brief offers six key recommendations:

1. Develop public-private shared manufacturing facilities (“Factories-for-Hire”) to support white-label electronics production
2. Upgrade the National Institute of Electronics into a design-focused Center of Excellence under PPP mode
3. Establish a national semiconductor task force, with international facilitation offices to connect to global value chains
4. Promote electronics design houses, especially in chip and PCB design, with grant-based startup support tied to fundraising success
5. Invest in certification labs and streamline access to international compliance pathways for both electronics and automotive products
6. Replicate the smartphone manufacturing policy approach to scale product complexity gradually across the electronics sector

The paper positions electronics not just as an industrial opportunity, but as a strategic pillar of Pakistan’s innovation economy — one that requires targeted state support in its upstream stages, but whose downstream competitiveness must ultimately be driven by the private sector.

The PBC is a private sector, not-for-profit business advocacy platform set up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s evidence-based policy research supports reforms that enhance Pakistan’s economic potential, industrial competitiveness, and ability to generate employment and exports.

While startups in Pakistan have demonstrated entrepreneurial resilience and attracted foreign interest, their long-term growth is threatened by chronic undercapitalization, regulatory uncertainty, and an absence of credible exit pathways. Drawing on stakeholder interviews, policy analysis, and international models, the paper offers a diagnostic of the capital formation environment—how capital is raised, structured, and recycled—and why it has failed to take root in a sustainable way.

Key barriers explored include the near-total absence of domestic institutional participation, limited legal structures for pooled capital, procedural friction between regulatory bodies, investor trust deficits, and a missing mergers and acquisitions (M&A) and public exit landscape. The paper examines why family offices, banks, corporates, and pension funds have remained passive, and why attempts at regulatory facilitation have failed to convert legal allowances into operational clarity.

The paper also evaluates the promise and limitations of the Pakistan Startup Fund (PSF), arguing for its integration into a larger fund-of-funds architecture. It presents a set of actionable policy recommendations to activate domestic capital, streamline regulatory processes, restore investor confidence, and enable meaningful exits through IPO and M&A reforms.

At its core, the paper contends that the challenge of capital formation for startups is not niche—it reflects broader investment bottlenecks in Pakistan’s economy. Fixing it is essential for inclusive innovation and economic competitiveness.

The PBC is a private sector, not-for-profit business advocacy platform set up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s evidence-based policy research supports reforms that enhance Pakistan’s economic potential, industrial competitiveness, and ability to generate employment and exports.

Pakistan’s agriculture sector—home to over 8 million farm holdings—faces persistent challenges: low productivity, fragmented markets, limited access to finance, and growing climate stress. Agri-tech holds real promise in addressing these issues. Startups and larger agribusinesses are now experimenting with tools that range from satellite-based crop intelligence and remote irrigation control to digital payments, input marketplaces, and smart warehousing.

This policy brief maps the current agri-tech landscape in Pakistan, highlighting the areas where innovation is gaining ground: digital platforms for market access, smart irrigation and water management, precision agriculture, financial inclusion, and real-time advisory services. Drawing from in-depth case studies—including Farmdar, RemoteWell, Godaam Tech, and Engro’s UgAi platform—the brief examines what’s working, what’s scalable, and where bottlenecks remain.

The findings are clear: while innovation is alive and growing, scaling remains difficult. Most adoption is still concentrated among large, progressive farmers. Hardware-based models face high transaction costs. Farmer trust is built slowly, often through repeated exposure and word-of-mouth. And without foundational infrastructure—like rural connectivity, digital land records, and interoperable data systems—most solutions remain local and fragile.

The brief offers targeted recommendations including strengthening digital payments and warehouse receipt financing, investing in shared infrastructure, co-funding demonstration plots, clarifying regulatory roadmaps, and supporting ecosystem builders with long-term capital. A standout insight is that agri-tech adoption in Pakistan is often driven not by information, but by finance—and not by promotion, but by proof.

Agri-tech is not a silver bullet, but it can be a catalyst. With the right enabling environment, it has the potential to improve yields, reduce losses, expand financial access, and strengthen supply chains. The opportunity now is to move from pilots to platforms—and to ensure that digital agriculture works not just for the few, but for the millions who need it most.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

Pakistan’s edible oil sector presents both a long-standing vulnerability and a major untapped opportunity. The country remains heavily dependent on imports, with edible oil imports regularly crossing USD 3 to 4 billion annually and meeting over 85% of domestic consumption. This import dependence exposes Pakistan to global price shocks, foreign exchange pressures, and supply risks.

Historically, oilseed development in Pakistan has faced multiple challenges: limited institutional capacity, lack of policy continuity, poor seed quality, weak farmer-market linkages, and an underdeveloped value chain. Oilseed crops such as rapeseed-mustard, sunflower, soybean, and cottonseed have been cultivated in varying degrees, but their productivity remains below potential. Farmers have often favored wheat and other Rabi crops due to government price support and greater income certainty.

Despite these challenges, Pakistan holds significant opportunities to scale domestic oilseed production. With improved seed systems, better agronomy, and market linkages, yields for rapeseed-mustard and sunflower can be significantly improved. Soybean, while still at a small scale, holds strong potential to serve Pakistan’s expanding poultry, livestock, and feed sectors. One of the most promising frontiers is oil palm cultivation in Pakistan’s coastal belt, particularly in Balochistan. Favorable climatic conditions, alluvial soils, and controlled irrigation provide a rare opportunity to develop a high-yield, year-round oil palm industry near Karachi’s processing and export hubs. Intercropping options, such as ginger, can further enhance returns.

Pakistan’s growing olive oil sector is also gaining traction, with over 5 million olive trees planted across multiple provinces. Supported by international partnerships, modern processing mills, and growing export activity, olive oil offers an emerging complementary pillar to Pakistan’s broader edible oil strategy.

To fully realize this potential, the brief recommends a set of targeted actions:

• Strengthen institutional capacity and coordination across federal and provincial levels.
• Improve seed development for improved access to good quality seeds.
• Deliver oilseed-specific farmer extension and agronomic advisory services.
• Invest in post-harvest infrastructure and modern oilseed-specific machinery.
• Develop oil palm clusters in Balochistan’s coastal belt.
• Scale up direct procurement models to improve farm-level prices.

With sustained commitment, oilseeds can become a national success story — reducing Pakistan’s import dependence, improving rural livelihoods, expanding exports, and building a more resilient agri-food system.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness. 

Pakistan’s poultry sector is one of the fastest-growing segments of the country’s agricultural economy, contributing significantly to food security, rural livelihoods, and economic resilience. With an annual output of 1.8 billion broilers and growing at an average rate of 8–10% per year, the sector has undergone notable modernization in breeding, feed milling, and farm management. It supports over 1.5 million jobs, absorbs more than 11 million metric tons of agri-residues annually, and provides the most affordable source of animal protein for consumers across all income groups.

Despite these gains, the sector faces a range of challenges that threaten its long-term sustainability and competitiveness. Price volatility, driven by fluctuating demand and frequent supply shocks, is exacerbated by the dominance of the informal market, which accounts for the majority of poultry sales but operates outside the tax net and regulatory framework. Meanwhile, formal processors bear a disproportionate tax burden, discouraging investment in value addition. Experiences from the milk sector illustrate how excessive taxation on the formal market can lead to decreased sales and a consumer shift to unregulated alternatives.

At the same time, high energy costs, unstable input prices—especially for feed—and heavy import dependency on soybean further erode profitability. Additionally, Pakistan’s lack of a comprehensive disease control program and outdated regulations block access to high-value export markets such as the EU and GCC. Although efforts have been initiated to harmonize food safety standards through the Pakistan Standards and Quality Control Authority (PSQCA), implementation has been delayed due to turf issues between the concerned federal and provincial regulators and the absence of a digital, integrated regulatory platform.

This policy brief recommends a multi-pronged reform agenda:

• Streamline food regulation – digital integration between federal and provincial authorities
• Reduce taxes on essential feed and processing inputs and restore zero-rating to support formalization
• Promote poultry processing and cold chain development to absorb market shocks and create an exportable surplus
• Expand domestic soybean production to reduce foreign exchange pressure and ensure feed supply security
• Develop a robust disease eradication strategy to lower mortality rates and open up new export markets

With targeted interventions, Pakistan can unlock the full potential of its poultry sector, enabling it to become a more resilient, competitive, and export-oriented industry that supports both economic growth and nutritional security.

The PBC is a private sector not-for-profit advocacy platform set-up in 2005 by 14 (now 100) of Pakistan’s largest businesses. PBC’s research-based advocacy supports measures which improve Pakistani industry’s regional and global competitiveness.