Ahmed Khan Malik

Karachi’s booming technology sector is ramping up its push for  joint ventures (JVs) with foreign companies. Industry leaders argued that the city is uniquely positioned to become a major digital hub for South Asia — provided that global and local firms collaborate to scale innovation, exports, and skilled employment.

In recent years, Karachi has emerged as one of Pakistan’s most active centers for software development, fintech innovation, IT-enabled services, and business process outsourcing. The city boasts tens of thousands of software engineers, hundreds of startups, and a growing presence of global tech firms operating offshore teams. According to stakeholders, the next phase of growth will hinge on foreign partnerships that bring capital, market access, and advanced expertise.

Representatives from IT sector told Wealth Pakistan that Pakistan’s largest metropolis already produces the majority of the country’s tech exports and hosts the deepest pool of engineering talent.

“Karachi has the capability, but we need sustained collaboration with global players to unlock its full potential,” noted Khushnood Aftab, Convener of Federation of Pakistan Chambers of Commerce & Industry’s Central Standing Committee on Information Technology. “JVs can help Pakistani firms integrate into international value chains, upgrade their technical capacities, and expand their presence in foreign markets.”

He said investor interest in Karachi’s tech market has grown steadily over the past three years, especially from companies in the Middle East, East Asia, and Europe, seeking cost-competitive development centres and new regional markets. “Yet many potential partners remain cautious due to concerns over regulatory complexities, inconsistent policy implementation, and the need for stronger intellectual property protections.”

To address these issues, Khushnood urged both provincial and federal authorities to streamline investment procedures and provide incentives for technology-focused JVs. He proposed simplifying tax structures for foreign-invested IT projects, accelerating company registration processes, and establishing dedicated “tech zones” where JVs can benefit from upgraded infrastructure and enhanced legal protections.

The government’s push for Special Technology Zones (STZs) could play a central role in attracting multinational partnerships if implementation speeds up. “STZs offer a promising framework, but investors want clarity, timelines, and a single-window mechanism,” said Zubair Latif, a Karachi-based tech entrepreneur who has been in talks with companies from the Gulf for launching JVs. “If the execution is solid, we could see a wave of foreign partners entering the market.”

He said that the city’s growing adoption of artificial intelligence tools, cloud engineering services, and data analytics has created a fresh opportunity for collaboration with global firms seeking to build large-scale engineering teams. According to him, Karachi’s young and increasingly tech-savvy workforce gives it a competitive advantage at a time when many global companies struggle to find affordable skilled talent.

Local firms are particularly eager to partner with international AI labs, cloud service providers, and cybersecurity companies to jointly build products for export. “We have the human capital; what we need now is technology transfer and global mentorship,” said Zubair. He said that Pakistan’s IT exports have risen significantly over the past decade, and business leaders in Karachi believe that exports could expand dramatically if JVs bring new client pipelines and global standards.

Credit: INP-WealthPk