Pakistan’s gaming industry is on the rise with a focus on mobile gaming. The sector has generated $171.30 million in 2022, according to Muhammad Zohaib Khan, Chairman of the Pakistan Software Houses Association (P@SHA). Khan believes that the industry has the potential to bring significant foreign exchange to the country, with projections that revenue in the video games segment will cross $200 million in 2023.
The growth of Pakistan’s gaming industry
At present, it’s gaming industry consists of approximately 8,500 game developers working in three primary sub-sectors: gaming products, middleware, and gaming services. These skilled professionals are the driving force behind the growth and success of the industry, which has become an increasingly significant contributor to Pakistan’s economy. With targeted efforts towards skills development, the country has the potential to add 3,000 more gaming developers to this workforce every year, further bolstering the industry’s growth and expansion. However, Khan believes that it can easily add 3,000 gaming developers to the HR pool every year. Investing in the skills development of aspiring game developers could result in a substantial 30 percent year-on-year (YoY) growth in the foreign remittances generated by Pakistan’s gaming industry. By adding 3,000 gaming developers to the industry’s workforce every year, the country can achieve this growth. Therefore, it is essential to prioritize HR and skills development to maximize the potential of the gaming industry and ensure its continued success in generating revenue for it’s economy.
Pakistan’s potential as a regional hub in game development
Khan referred to Statista Market Forecast & International Trade Center (ITC) and said that it has the potential to become the next regional hub in game development. This is due to the fact that 64 percent of it’s population is young, and with targeted skills development, the country can surpass its yearly projections.
Investing in the gaming industry
In order for gaming industry to achieve its full potential, it is crucial for the government to allow the IT & ITeS industry to have control over their hard-earned foreign exchange to fund their businesses, reinvest in their entities, and invest in marketing, sales, and networking. Allowing this would not only contribute to strengthening it’s foreign exchange reserves (FER) but also enable the industry to grow and expand further.
However, to make this possible, it is important to ensure that this is a mutually beneficial arrangement for both the government institutions and the gaming industry. It is necessary to create a constructive and egalitarian consultative process between P@SHA, the State Bank of Pakistan (SBP), and the Federal Board of Revenue (FBR) to address any outstanding issues and work towards resolving them. This would help create a supportive environment for the industry and allow it to reach its full potential as a significant contributor to economy.
Challenges
While the gaming industry presents many opportunities, it also faces several challenges that need to be addressed. One of the primary challenges is the lack of infrastructure and support for the industry. The government needs to create a supportive environment for the industry by investing in infrastructure, providing incentives for investors, and creating policies that are favorable to the gaming industry.
Another challenge that the industry faces is the lack of skilled professionals. While the industry has been growing steadily, there is still a shortage of skilled game developers, designers, and programmers. To address this challenge, the industry needs to invest in training and development programs to nurture talent and ensure that the industry has the necessary skills to compete in the global market.
Additionally, it’s gaming industry is still in its early stages and needs significant investment to grow. Currently, most of the investment in the industry comes from foreign investors. The government needs to create policies that attract local investors to the industry.
The lack of legal protection for intellectual property is also a significant challenge for the gaming industry. Without proper legal protection, game developers may be hesitant to invest in the industry, fearing that their ideas and creations may be stolen.
Opportunities
Despite the challenges, gaming industry presents several opportunities for investors and entrepreneurs. The young population in the country is one of the most significant advantages for the industry. The youth is tech-savvy and is interested in gaming, making an attractive market for game developers and publishers.
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The growth of the mobile gaming industry is also an opportunity for its gaming industry. Mobile gaming is becoming increasingly popular, and it’s market is no exception. The popularity of mobile gaming presents an opportunity for local game developers to create games that cater to the local market and capture a significant market share.
Another opportunity for the gaming industry in the country’s low-cost production capabilities. It can produce games at a lower cost than many other countries, making it an attractive option for outsourcing game development and production.
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It has the potential to bring significant foreign exchange to the country. With projections that revenue in the video games segment will cross $200 million in 2023, investment in HR and skills development for aspiring game developers could result in a 30 percent year-on-year (YoY) growth in the gaming industry’s foreign remittances. It has the potential to become the next regional hub in game development, and it is essential that the government institutions and the gaming industry work together to achieve this potential.
