Gilgit-Baltistan's IT sector hits up to $18M, says PASHA

Gilgit Baltistan is rising fast in Pakistan’s digital economy. The region now generates an estimated $15 million to $18 million in annual IT revenue, reported by PASHA in its new sector study. The Gilgit Baltistan IT and IT-Enabled Sector Diagnostic Report notes that around 120 active IT companies bring in nearly $3.5 million. Another 3,000 to 4,000 freelancers earn between $10 million and $15 million each year. These numbers show strong activity in cloud services, software outsourcing, AI skills, and remote work trends.

PASHA says the steady growth is real, but revenue remains modest. Market access is limited. Project sizes are small. Many firms are still in early stages. Most companies have fewer than 50 employees. A major portion of professionals work as freelancers or gig workers. The ecosystem is active, but it has not reached the scale of major hubs like Karachi or Lahore.

IT Sector in GB

The report explains that GB’s tech industry remains small because of restricted market access and limited project flow. Business development remains early-stage. Most companies offer software development, web design, and core IT solutions for clients outside the region. The local market is small because agriculture, tourism, and public sector jobs dominate local demand. This pushes most firms to look toward larger Pakistani cities and global clients.

A snapshot of the region shows a small set of formally registered IT firms in major towns. A larger network of freelancers and informal teams fills the rest of the space. Around 68% of active firms are located in the Gilgit district, which serves as the main tech hub. Some companies also operate in Skardu, Hunza, and emerging pockets where tech communities continue to grow.

About 300 firms are registered with SECP, but only 100 to 120 appear active. The total workforce ranges from 6,000 to 7,000 people, including freelancers and company employees. This reflects a growing startup ecosystem shaped by remote work and global tech demand.

Issues and Challenges

Power shortages and slow broadband are the biggest obstacles. Nearly 88% of companies face disruptions from electricity outages. Unstable internet slows daily operations. These issues show a clear need for better power and telecom infrastructure.

Funding access is another hurdle. There are no local venture capital players. Most firms depend on personal savings or small grants. Banks rarely support early tech startups. Government support exists, but development plans are still early. Recent public budgets have started to allocate funds for digital expansion.

Firms also struggle to reach bigger markets. Many companies operate remotely with lean teams. According to PASHA:

40% say limited marketing reach is their main barrier
23% point to a lack of networking opportunities
15–20% report high costs, low market intelligence, and talent shortages

Regulatory and logistical issues slow progress further. These gaps highlight the need for stronger marketing support, trade fair participation, and accelerator programs that promote software exports, remote work services, and cloud solutions.

The study outlines major opportunities. Tech clusters can grow faster with the right support. Larger IT enterprises can emerge with access to national and international markets. Companies recommend participation in global expos, subsidized stalls at tech events, and inclusion in Pakistan’s IT export programs.

Stakeholders argue that the right incentives can draw major investors. One proposed step is the creation of an IT Special Economic Zone in GB to boost sector growth.

PASHA Senior Vice Chairman Muhammad Umair Nizam states that annual IT revenue could rise from $15 million to $30 million within two years with the right focus.

Digital Integration Plans

The Ministry of IT and Telecommunication, working with the Special Investment Facilitation Council and PASHA, plans to integrate GB deeper into Pakistan’s tech ecosystem. These plans address major issues like electricity shortages and connectivity gaps.

PASHA also hosted its first CXO Meetup in GB with the Gilgit Baltistan Software Houses Association. Policymakers, innovators, and tech workers discussed digital inclusion and regional growth. PASHA plans to open a new office in GB, which marks a strong milestone for the local industry.

GB remains a priority for Pakistan’s tech roadmap. Local startups and companies will be featured at ITCN Asia in Lahore. A “Made in GB” pavilion will highlight their work and promote regional talent on a national stage.

FAQs

1. How much revenue does the Gilgit Baltistan IT sector generate?

It generates around $15 million to $18 million each year through IT companies and freelancers.

2. How many freelancers work in GB’s IT field?

Around 3,000 to 4,000 freelancers earn between $10 million and $15 million annually.

3. What are the main challenges for GB’s IT industry?

Power issues, weak internet, limited funding, and restricted market access create major hurdles.

4. Where are most IT companies located in GB?

About 68% are based in the Gilgit district, while others operate in Skardu, Hunza, and nearby areas.

5. What support is planned for GB’s tech sector?

Plans include better connectivity, improved infrastructure, more trade access, a proposed IT SEZ, and a new PASHA office.

PASHA reports up to $18M from Gilgit-Baltistan’s growing IT sector