Pakistan has rapidly expanded its network of Software Technology Parks (STPs) to support the country’s booming IT sector. The Ministry of Information Technology and Telecommunication (MoITT), through the Pakistan Software Export Board (PSEB), has established 43 Software Technology Parks across the country, including in Tier-II and Tier-III cities.
These parks serve as a backbone for IT companies seeking affordable, well-equipped office space — and they play a direct role in driving Pakistan’s record-breaking IT exports.
What Are Software Technology Parks?
The project envisages the establishment of Software Technology Parks in Karachi, Lahore, Islamabad, and secondary and tertiary cities by converting public or privately owned dilapidated or defunct office buildings, factories, and warehouses to provide IT-enabled office space to IT and ITeS companies at affordable rates.
The parks focus on commercialization of knowledge through managing innovations, business support services, inculcating and promoting entrepreneurship, providing consultancy services, and offering IT-enabled and conducive office space to IT companies registered with PSEB.
How Many STPs Operate in Pakistan?
As of early 2025, 43 STPs operate across the country, hosting over 350 IT and IT-enabled Services (ITeS) companies and employing 18,000 professionals across a combined covered area of 1.9 million square feet.
Notably, 20% of the workforce in these STPs consists of women.
City-Wise Locations
These facilities, set up between FY2022–24, are located in Islamabad, Lahore, Karachi, Gilgit, Rahim Yar Khan, Faisalabad, Swat, Quetta, Gujranwala, Sialkot, Abbottabad, Mansehra, Gujrat, Jamshoro, Nawabshah, Gakuch, Bahawalpur, and Khuzdar.
The geographic spread into smaller cities helps decentralize Pakistan’s IT sector and creates employment opportunities beyond the three major metropolitan centres.
Key Incentives for Tenant Companies
Tenant companies receive a 25% rental subsidy during the first 12 months of an STP’s establishment. They also receive free-of-cost bandwidth at 256Kbps per professional during the same period.
These subsidies lower the barrier of entry for startups and small IT firms that may not afford premium office space in Pakistan’s major cities.
Economic Impact
The STPs contribute significantly to Pakistan’s economy, generating $100 million annually in foreign exchange earnings and $15 million in domestic revenue.
The broader IT sector has grown even faster. Pakistan’s IT and ITeS exports reached a record high of $3.8 billion in FY2024–25. Cumulative IT export inflows reached $2.97 billion by the end of February 2026, with IT exports now accounting for over 10.8% of Pakistan’s total exports.
The government set an IT export target of $5 billion for FY2025–26. A more realistic projection, based on maintaining the current cumulative run rate, puts full-year IT exports closer to $4.4 to $4.6 billion.
Major IT Park Projects
Beyond the 43 STPs, two large-scale IT parks are under development with South Korean financing.
Islamabad IT Park
The Islamabad IT Park is being developed on 14.9 acres of land, with $76.3 million from Korean funding and $12.5 million allocated under Pakistan’s PSDP.
Project Director Amir Ahmad confirmed that 98% of the park’s structure is now complete. Federal IT Minister Shaza Fatima noted that the project has reached 80% overall completion, with 60% of this work done within just the last year.
The National Assembly committee issued a strict directive to complete the Islamabad IT Park by February 28. Once completed, the $88.4 million project is expected to generate 7,500 jobs and increase IT exports by $70 million.
Karachi IT Park
The Karachi project has faced significant hurdles. The project suffered a setback after its second tender failed to attract any bidders, prompting the Ministry of IT to seek Rs. 11,500 million in the PSDP 2026–27 to keep the Rs. 31,200 million project on track.
Physical progress stands at only 10% and financial progress at 5%. The project has already faced nearly three years of delay.
The initiative, located near Karachi airport, ran into complications after objections from the Civil Aviation Authority, which led to design revisions and cancellation of the initial land allotment.
The completion is now targeted between mid-2026 and mid-2027, with updates indicating a likely finish by July 2027.
First Women Software Technology Park
Director General SCO, Major General Umer Ahmed Shah, inaugurated Pakistan’s first-ever Women Software Technology Park in Muzaffarabad, Azad Jammu & Kashmir. This landmark initiative marks the 8th STP out of a total of 11 STPs planned in AJK.
The Women STP provides a safe, modern, and fully equipped workspace for female freelancers, entrepreneurs, and IT professionals, opening opportunities for employment, entrepreneurship, and skill development.
IT Export Growth and Outlook
Pakistan’s IT sector shows sustained momentum. On a cumulative basis, IT and telecom export remittances for the first eight months of FY2025–26 reached $2.975 billion, a year-on-year increase of 19.7%.
The government’s Uraan Pakistan economic plan aims to elevate annual IT exports to $10 billion by FY2029. The STP network plays a central role in achieving this ambitious target.
The government also plans to establish 250 e-Rozgaar centres across Pakistan by 2027 under the PSDP project for startups, specialized IT trainings, and venture capital.
What Comes Next
Pakistan’s STP network has matured from a small pilot of 25 parks into a 43-park ecosystem spread across 18 cities. The Islamabad IT Park nears completion. The Karachi IT Park faces delays but remains a national priority. The first Women STP in AJK signals a more inclusive approach.
With IT exports on track to surpass $4.4 billion this fiscal year and the sector now representing over 10% of national exports, software technology parks stand as critical infrastructure in Pakistan’s digital transformation.