Negligible Hardware Development Hampers IT Growth

The nation’s proficiency in creating hardware to satisfy domestic needs and boost exports is substantially lower when juxtaposed with its software consultancy capabilities.

State Bank of Pakistan data reveals that hardware brought in a meager $7.5 million in foreign exchange during the fiscal year 2025. While still minimal, this represents an almost 10% increase from the $6.8 million recorded in the fiscal year 2024.

It is estimated that imports, encompassing items like desktop computers, laptops, printers, scanners, and data center equipment, account for 99% of the country’s hardware requirements.

Experts emphasize that the IT sector’s significant weakness is demonstrated by the limited contribution of domestic hardware production, and there doesn’t seem to be a strategy in place to foster its local development.

Local Assembly Imperative

Khushnood Aftab, Convenor at the Federation of Pakistan Chambers of Commerce and Industry (FPCC) on IT and Chairman of Viper Group, conveyed to Business Recorder that creating local assembly facilities for computer systems, laptops, and related items is crucial for Pakistan to keep up with the rising demand for these technologies.

He highlighted that the significant foreign exchange losses incurred by the country due to substantial computer and laptop imports are a direct result of the absence of a supportive IT hardware policy.

He asserted that Pakistan possesses the capabilities to develop automobiles, sophisticated aerial vehicles and smartphones to international standards. With committed policymakers, the nation could also establish its computer and laptop assembly sector within a few years.

Despite the government’s recent approval of an artificial intelligence policy, he noted that it regrettably omits any reference to hardware.

He added that, despite obstacles and a lack of governmental backing, a small number of manufacturers in Pakistan are involved in the assembly of computer systems and accessories, demonstrating the nation’s potential to significantly expand the sector.

He suggested that IT assembly facilities run by foreign companies could also provide training to young people for smartphone assembly and production, assisting the country in exporting goods manufactured in Pakistan.

Data Centers and Cybersecurity

Datavault CEO Mehwish Ali Khan emphasized that the IT industry’s hardware extends beyond the manufacture of desktop computers and laptops to include a variety of systems, such as servers and data center equipment.

She stated that the need for data centers is rising in the nation and that domestic companies ought to step forward to build native facilities.

She emphasized that producing local systems is also necessary to handle cybersecurity and data protection concerns for the private and sensitive data of the nation’s strategic organizations and commercial business units.

She concluded that it is essential for the ministry and regulators to create a policy that encourages the domestic assembly and production of computers, laptops, and hardware systems, which will not only draw in foreign investment but also hasten the transfer of technology in the country.