AI is changing Pakistan’s technology job market by reducing demand for junior software developers and other entry-level technology professionals. While the country’s IT sector continues to grow, companies are increasingly using artificial intelligence to automate routine tasks, leading to fewer opportunities for newcomers.
The shift comes during a period of strong growth for Pakistan’s information technology industry. During the fiscal year 2025-26, IT and telecom export remittances reached a record Rs. 1.2 trillion. This represented a 20.6 percent increase compared to the previous fiscal year, showing that the sector continues to expand despite changes in hiring trends.
According to the Pakistan Software Houses Association (P@SHA), hiring for entry-level positions at major technology companies has declined by around 25 percent. The report also found that employment among software developers between the ages of 22 and 25 has dropped by nearly 20 percent since 2024.
Industry experts believe the increasing use of AI tools is one of the main reasons behind this change. Many routine technical tasks that were once handled by junior employees are now being completed more efficiently with the help of artificial intelligence.
The report also highlighted changes in Pakistan’s freelance market. Entry-level freelance projects have fallen from around 15 percent of available listings to below 9 percent. At the same time, basic writing and translation work declined by 32 percent over the past year as more organizations adopted AI-powered tools.
Despite these changes, government officials believe artificial intelligence should be viewed as an opportunity rather than a threat. Federal Minister for Information Technology Shaza Fatima Khawaja said the country is preparing for a long-term transition instead of resisting technological change.
She explained that the National AI Policy 2025 aims to create three million AI-related jobs by the year 2030. The policy focuses on investment, professional training, and scholarship programs to prepare Pakistan’s workforce for future technology careers.
According to the minister, the government’s objective is to help workers learn how to use AI effectively instead of allowing technology to replace them. Officials believe that people with the right digital skills will continue to find new employment opportunities as the industry evolves.
Technology companies are also changing the type of talent they hire. Routine work such as basic website development, simple mobile application development, manual software testing, and entry-level graphic design is increasingly being automated.
At the same time, demand is growing for professionals with advanced technical skills. Companies are now looking for experts in AI engineering, cybersecurity, cloud computing, AI integration, and advanced software development. These specialized fields are expected to create new career opportunities as businesses continue adopting modern technologies.
Several technology firms have already revised their hiring strategies. Some companies reported that AI allows existing employees to complete more work, reducing the need to recruit large numbers of junior developers. Others said they now prefer experienced professionals who can effectively work alongside AI-powered systems.
Although entry-level hiring has slowed, Pakistan’s technology industry continues to expand through higher exports and increased investment in digital services. Industry leaders believe future success will depend on helping students and young professionals develop advanced technical skills that match changing market demands.
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As AI continues to reshape the workplace, experts expect the demand for specialized digital skills to increase further. They believe workers who adapt to new technologies and continuously upgrade their expertise will be better prepared for the future of Pakistan’s growing technology sector.
