Pakistan could do it, so why couldn’t Bangladesh?

Recently two pieces of news about Pakistan’s information technology sector caught my attention. On 18 August, in the presence of Prime Minister Shehbaz Sharif in Islamabad, Google officially inaugurated its first dedicated office in Pakistan.

Around the same time, it was reported that Pakistan’s information and communications technology sector earned $4.6 billion in export revenue in the 2025-26 fiscal year. In July of the new fiscal year alone, exports amounted to $417 million, an 18 per cent increase compared with July of the previous year.

The figure can be placed alongside Bangladesh’s. According to World Bank data for 2024, Bangladesh’s exports of information and communications technology services were approximately $703 million; according to Export Promotion Bureau figures for fiscal year 2024–25, the figure was around $725 million. There may be some differences in definitions and methods of calculation, so the figures may not be directly comparable. But there is no doubt that the gap is substantial.

Yet in 2010, according to comparable World Bank data, Bangladesh’s exports in this sector stood at approximately $313 million, compared with $434 million for Pakistan. The gap was not insurmountable at the time. A decade and a half later, Pakistan has reached the $4.6 billion mark. Why couldn’t we?

The question is even more significant because the institutional organisations supporting the IT industries in both countries emerged at roughly the same time. The Pakistani government established the Pakistan Software Export Board (PSEB) in 1995. In Bangladesh, BASIS was formed in 1998 with 18 member organizations, with the goal of achieving $1 billion in exports.

To understand Pakistan’s information technology sector today, it is not enough to look only at software companies or freelancers. The discussion has to begin much earlier. In 2002, during the tenure of then-President Pervez Musharraf, Pakistan replaced its University Grants Commission with a stronger Higher Education Commission (HEC). Professor Atta-ur-Rahman was appointed to lead it.

During his tenure, the salaries and career advancement of teachers and researchers were linked to the quality and outcomes of their research. Major investments were also made in bringing researchers back from abroad, research grants, digital libraries, and PhD scholarships both at home and overseas.

In 2003, the Abdus Salam School of Mathematical Sciences was established at Government College University in Lahore. I had been in contact with its founding director-general, mathematician Professor ADR Choudhury, through the International Mathematical Olympiad. Rather than focusing on flashy infrastructure, the institution concentrated on bringing in high-quality mathematicians from Pakistan and abroad and developing research and PhD programs. By early 2014, it had produced more than a hundred PhDs. Pakistan understood even then that people and a strong research environment mattered more than buildings.

A recent symbol of this talent-development process is Suwaleh Asif. Growing up in Karachi, Asif represented Pakistan at the International Mathematical Olympiad for three consecutive years, from 2016 to 2018. I saw the curiosity in his eyes there.

Asif later went to MIT, where he and his classmates founded Anysphere and Cursor. Cursor is an American company, but it has become an example of what Pakistani talent can achieve when it finds a world-class environment for innovation. Most notably, Elon Musk’s company recently acquired it for just $60 billion. Asif has not only developed himself; he has also sent a message to the world that talented people like him can build their future while remaining connected to Pakistan.

Similarly, our problem is not simply a shortage of talent. Many of our engineers work at leading technology companies around the world, including Google and Meta. The question is: How effectively are we able to turn that talent into major companies, homegrown products, and export earnings while operating from Bangladesh itself?

Pakistan’s university reforms alone do not explain the $4.6 billion in exports. At the heart of PSEB’s work is a focus on exports—they look at skilled manpower, institutional capacity, international marketing, and access to foreign markets as parts of the same equation. During the first nine months of fiscal year 2025–26, PSEB took more than 300 companies to 20 major international technology events.

At the LEAP conference, which concluded in Saudi Arabia a few days ago, more than 1,000 representatives from over 100 Pakistani companies took part. Pakistan also had its own national pavilion there. According to Pakistan’s Economic Survey, these efforts generated 4,228 potential business leads and business worth approximately $74 million.

They have also identified the issue of facilitating the flow of money. IT exporters and freelancers are allowed to retain a significant portion of their export earnings in foreign-currency accounts and to send money abroad for business purposes.

There are still complications; many entrepreneurs face difficulties paying for overseas offices, marketing, or software services. But PSEB and the central bank acknowledge the problem and are working to simplify the process. PayPal is still not officially available in Pakistan, and there are also complaints about the quality of internet services. In other words, Pakistan’s exports did not grow only after all the problems had been resolved; rather, several important bottlenecks were addressed while significant constraints remained.

During the first nine months of fiscal year 2025–26, Pakistan’s freelancers earned $856.3 million in foreign currency, a 51 percent increase compared with the same period of the previous year. The DigiSkills program, launched in 2018, provides free training in a range of areas, including artificial intelligence, data analytics, cloud computing, UI/UX, web development, digital marketing, and e-commerce.

By March 2026, the program had provided more than 5.1 million training sessions. The government claims that those who received the training collectively earn around $1.65 billion annually.

Bangladesh, too, has had no shortage of training initiatives. Thousands of young people have received training through various projects such as Learning and Earning and Ghar-e-Boshe Borolok. But questions remain about the quality of the training, the support provided after training, and how many trainees actually went on to earn foreign currency on a regular basis.

Not all initiatives, however, are the same. A “hire and train” model, in which companies themselves recruit and train workers while the government covers part of the cost, is more practical in a technology sector that is changing rapidly. We have also tried this approach. The key point is that, alongside measuring how many people received training, we also need to measure how many found jobs, how many dollars they earned, and how much export revenue was generated.

The difference is also visible in infrastructure. In Bangladesh, when we talk about hi-tech parks, we have tended to think in terms of large tracts of land and new buildings. Pakistan’s PSEB, by contrast, has created many software technology parks by converting existing office buildings, factories, or warehouses into IT-enabled workspaces. More than 350 companies are now operating in over 50 such parks.

A small software company does not need 50 acres of land; it needs a 2,000-square-foot office, uninterrupted electricity, fast internet, easy access to dollar transactions, and foreign buyers.

We can also learn from Japan when it comes to establishing “export offices” abroad. Drawing on models such as Japan’s JETRO, it is important to provide local consultants, temporary offices or business addresses, market information, and initial assistance with setting up companies in key foreign markets. For Bangladeshi technology companies, such support in selected overseas markets could create a pathway to reaching buyers directly. I believe one of the government’s new priorities should be to establish an international market presence and provide budgetary support for the marketing and sales capabilities of technology companies.

Creating a programmer alone does not create exports. The entire cycle needs attention, from skilled manpower to companies, from companies to foreign buyers, receiving payments, reinvesting, international sales, and scaling the business. Bangladesh has undertaken projects in almost every one of these areas. But were they coordinated around a common export objective?

Three days after Google opened its office, the Pakistani government and Google signed a memorandum of understanding. Under the agreement, they plan to establish an artificial intelligence center of excellence in Islamabad, provide Google Career Certificates to 150,000 workers in 2026, and collaborate on the digital economy and artificial intelligence. Pakistan’s IT exports did not reach $4.6 billion because Google opened an office there.

Rather, the foundation for markets and skilled manpower had already been built, companies and exports had grown, and now a global technology company is becoming more deeply involved in the country. Pakistani industry leaders are not complacent either. Their question is: How can they go from $4.6 billion to $15 billion?

In the age of artificial intelligence, repetitive, low-skilled work will decline. So the focus must shift toward higher-value services, homegrown products, deep expertise in specific industries, and moving from “selling hours” to “selling solutions and outcomes.”

Over the past decade and a half, Bangladesh has undertaken many initiatives, including Digital Bangladesh, skills development, hi-tech parks, tax incentives, export incentives, and training for freelancers. BASIS has also worked on policy support and exploring foreign markets. So it would be unfair to say, “We have done nothing.” My question is about coordination. What is the single, measurable target for increasing IT exports? Who is responsible for achieving that number?

Technology entrepreneurs also need to look at themselves. Not every problem can be explained by saying, “There aren’t enough good engineers,” “Bangladesh has a poor image,” or “The government isn’t providing support.” Pakistan also has limitations related to its image, internet connectivity, PayPal, and banking. We cannot avoid asking how much our entrepreneurs themselves are investing in international sales, building long-term markets, and establishing a presence abroad.

Waiting for the government is not the only option. Recently, a private, nonprofit initiative called Outsource to BD has begun operating. To my knowledge, there are several other such initiatives and efforts as well. These kinds of initiatives can help technology companies enter foreign markets, connect expatriate Bangladeshis with reliable local companies, build international sales capabilities, and turn small companies into major exporters.

The government can provide supportive policies and make financial transactions easier; but ultimately, much of the work of finding buyers abroad, building relationships, and growing companies will have to be done by the private sector.

In 2010, the gap between Bangladesh and Pakistan was not very large. In 2026, Pakistan is talking about $4.6 billion in IT exports and even bigger targets ahead. We too need to ask ourselves anew: What should Bangladesh’s target be for the next five years, and who will be responsible for achieving it?

As I write this today, another fear is also lurking at the back of my mind. Recently, Nepal too has been making determined efforts to increase its exports of IT products and services. I hope that three years from now, I will not have to write again: “Even tiny Nepal managed to do it, while we could not.”

* Munir Hasan is a consultant to Prothom Alo and president of Bangladesh Open Source Network.
* The views expressed are those of the author.

* This article appearing in Prothom Alo Online has been translated into English for Prothom Alo English Online