IT Industry Development In South Asia: Lessons For Pakistan

Abstract

The global IT industry is reshaping economies through digital services, innovation and cross-border integration. In South Asia, India, Bangladesh and Sri Lanka have demonstrated notable advancement in this sector. In contrast, Pakistan’s IT sector and human capital remains underutilized. The absence of a clear value-based benchmark limits its competitive visibility. This study examines IT development patterns in South Asia and evaluates Pakistan’s position using qualitative, quantitative indicators and strategic frameworks. A mixed comparative approach was adopted based on secondary data. SWOT analysis was applied to assess Pakistan’s digital economy, while Porter’s Diamond Model was operationalized through a qualitative-to-quantitative scoring method to facilitate cross-country comparison. Findings indicated that India’s consistent policies, Bangladesh’s targeted digital initiatives and Sri Lanka’s sectoral specialization have strengthened their competitiveness. Pakistan, however, continues to face structural constraints, including skills shortages, low R&D spending, inadequate infrastructure along with fragmented policy execution. The paper concludes with short and long-term recommendations focused on developing a comprehensive IT export strategy enhancing digital skills, promoting venture capital investment and expanding regional digital cooperation to improve Pakistan’s global competitiveness.