Artificial intelligence is reducing demand for junior software developers and other entry-level technology roles in Pakistan, with hiring for these positions falling by around 25 percent.
The shift comes despite continued growth in Pakistan’s information technology sector, where IT and telecom export remittances reached a record Rs. 1.2 trillion during fiscal year 2025-26, up 20.6 percent from the previous year.
According to the Pakistan Software Houses Association (P@SHA), hiring for entry-level positions at major technology companies has declined by around 25 percent, while employment among software developers aged 22 to 25 has fallen by nearly 20 percent since 2024.
The report also found that entry-level freelance projects have dropped from around 15 percent of listings to below 9 percent, while basic writing and translation work declined 32 percent year over year as AI adoption increased.
Minister’s words
Federal Minister for Information Technology, Shaza Fatima Khawaja, said AI should be viewed as a transition rather than a threat, adding that the government’s National AI Policy 2025 aims to create 3 million AI-related jobs by 2030 through investment, training, and scholarships. She said the focus is on helping workers use AI tools rather than be replaced by them.
Routine work such as basic website development, app development, graphic design, and manual software testing is increasingly being automated, while demand is rising for professionals with expertise in AI engineering, cybersecurity, cloud computing, AI integration, and advanced software development.
Several tech firms have already adjusted their hiring strategies. Some said AI has reduced the need for delivery and junior coding roles while allowing existing employees to handle more projects.
Others said they now prefer experienced professionals who can work alongside AI-powered tools instead of hiring large numbers of entry-level developers.
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