Artificial intelligence (AI) adoption is reshaping Pakistan’s technology job market, with demand for junior software developers and other entry-level tech roles declining as companies increasingly rely on AI-powered tools.
Hiring for entry-level positions at major technology firms has dropped by around 25 percent, while employment among software developers aged 22 to 25 has declined by nearly 20 percent since 2024, according to the Pakistan Software Houses Association (P@SHA).
The decline comes despite strong growth in Pakistan’s IT sector, with IT and telecom export remittances reaching a record Rs. 1.2 trillion in fiscal year 2025-26, marking a 20.6 percent increase compared to the previous year.
P@SHA’s report highlighted that AI is reducing demand for routine technology work. Entry-level freelance projects have fallen from around 15 percent of total listings to below 9 percent, while basic writing and translation assignments declined by 32 percent year-on-year as businesses adopted AI tools.
AI Changing Nature of Tech Jobs
Routine tasks, including basic website development, simple app creation, graphic design, and manual software testing, are increasingly being automated through AI solutions.
At the same time, demand is growing for professionals skilled in AI engineering, cybersecurity, cloud computing, AI implementation, and advanced software development.
Federal Minister for Information Technology Shaza Fatima Khawaja said AI should be considered a technological transition rather than a threat to employment. She added that the government’s National AI Policy 2025 aims to create 3 million AI-related jobs by 2030 through investment, skills development programs, and scholarships.
She said the objective is to enable workers to use AI tools effectively and enhance productivity rather than compete against automation.
Companies Shift Hiring Strategies
Several technology companies have already changed their recruitment strategies as AI adoption expands.
Some firms said AI tools have reduced the need for large teams focused on delivery work and junior-level coding tasks, allowing existing employees to manage more projects.
Others said they are prioritizing experienced professionals who can collaborate with AI systems instead of expanding entry-level hiring.
The shift suggests that while AI may reduce opportunities in traditional junior roles, companies are increasingly seeking workers with advanced technical skills who can develop, manage, and integrate AI-driven solutions.
