Don't fall for the 'software sizzle'
Growing enthusiasm around Pakistan's burgeoning software exports overlooks a fundamental truth about development: a country our size cannot leap into a service-based economy without first undergoing robust industrialisation. Yes, there is no doubt that software exports have grown remarkably, and the government's new forecast targets a stunning rise to $25 billion by 2029. Yet even if several hundred thousand skilled freelancers are able to connect to global tech markets, this specialised group remains too small to uplift a country of over 240 million out of low-income status. The underlying challenge is that the majority of Pakistan's population lacks the depth of education and literacy needed to sustain a mass services sector. While youth literacy in major cities is now over 90%, this gain in basic literacy is not strong enough to suddenly jumpstart a massive high-end services industry. Our capacity to move up the value chain in software or digital services is still capped...