ISLAMABAD – Artificial intelligence is reducing demand for entry-level technology professionals in Pakistan, with hiring for junior software developers and other early-career roles declining as companies increasingly adopt AI-powered tools.
The trend comes despite continued expansion in the country’s information technology sector. Pakistan’s IT and telecom export remittances reached a record Rs1.2 trillion during fiscal year 2025-26, reflecting a 20.6 per cent increase compared with the previous fiscal year.
According to the Pakistan Software Houses Association (P@SHA), recruitment for entry-level positions at major technology companies has declined by around 25pc. Employment among software developers aged between 22 and 25 has also fallen by nearly 20pc since 2024.
The report further noted that entry-level freelance projects have dropped from about 15pc of available listings to below 9pc. Basic writing and translation assignments also recorded a 32pc year-on-year decline as businesses increasingly adopted AI-based tools.
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Government sees AI as an opportunity
Minister for Information Technology Shaza Fatima Khawaja said artificial intelligence should be viewed as a technological transition rather than a threat to employment.
She said the government’s National AI Policy 2025 seeks to create three million AI-related jobs by 2030 through investment, workforce training programmes and scholarships. According to the minister, the policy aims to equip workers with AI skills instead of allowing technology to replace them.
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Skills in demand
Industry experts say routine work, including basic website development, entry-level app development, graphic design and manual software testing, is increasingly being automated.
At the same time, employers are seeking professionals with expertise in AI engineering, cybersecurity, cloud computing, AI integration and advanced software development.
Several technology firms have also revised their recruitment strategies, saying AI enables existing employees to complete more work while reducing the need for junior coding and delivery roles. Many companies now prefer experienced professionals who can effectively use AI-powered tools instead of expanding entry-level hiring.
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Key points:
- Hiring for entry-level technology jobs in Pakistan has fallen by around 25pc, according to P@SHA.
- Employment among software developers aged 22 to 25 has declined by nearly 20pc since 2024.
- Entry-level freelance work and basic writing and translation projects have also dropped as AI adoption increases.
- Pakistan’s IT and telecom export remittances reached a record Rs1.2 trillion in FY2025-26 despite the hiring slowdown.
- The government says its National AI Policy 2025 aims to create three million AI-related jobs by 2030.
- Demand is shifting towards AI engineering, cybersecurity, cloud computing and advanced software development skills.
