Pakistan Outsourcing

Outsource to Pakistan: Hiring Software Engineers in Pakistan

Grow your technology team with confidence by tapping into Pakistan's thriving talent pool through Hyperion360. Our Global Staffing & Team Extension Services ensure seamless, efficient, and cost-effective international expansion and outsourcing.

Already found qualified software engineers or other talent to work with in Pakistan? Hyperion360 can be your Employer of Record (EOR) in Pakistan. Hyperion360 helps you pay your team members anywhere in the world. If we don't have a local entity in a particular country we have a vast network of payroll partners who can help allowing you to hire top talent almost anywhere in the world. Need help finding software engineers? Contact us.


Pakistan Hyperion360 Talent Score

Ease of Hiring Developers in Pakistan
Cost of Doing Business in Pakistan
English Proficiency in Pakistan
US-Timezone Overlap with Pakistan
Technical Skills in Pakistan
Internet Reliability in Pakistan
Retention Rate in Pakistan
University Quality in Pakistan
Quality of Life in Pakistan
Political & Economic Stability in Pakistan

The Hyperion360 Talent Score for Pakistan is determined by evaluating and averaging several key factors that influence the attractiveness and viability of hiring software engineers in the country. These factors are assessed on a scale from 1 to 10, where 10 represents the highest performance or most favorable conditions.

Table of Contents

Hiring Software Engineers in Pakistan

Key Facts About Hiring Software Engineers in Pakistan

  • Large Talent Pool: Pakistan offers a vast talent pool of skilled software developers. The IT sector is growing rapidly, with around 600,000 IT professionals employed in 2021.
  • Cost-Effective: Hiring software engineers in Pakistan is highly cost-effective due to lower wage levels compared to Western countries.
  • Quality of Work: Pakistan has invested significantly in its IT sector, producing skilled and reliable software developers.
  • Time Zone: Pakistan’s time zone (GMT+5) allows for considerable overlap with European and North American work hours, facilitating real-time collaboration.
  • Language: English proficiency is high among IT professionals in Pakistan, making communication seamless.
  • Ease of Doing Business: Pakistan is improving its business environment, currently ranked 108th in ease of doing business.
  • Innovative Tech Scene: Pakistan has a burgeoning startup ecosystem and a vibrant tech scene, contributing to global tech advancements.
  • Software Market Revenue: In 2021, Pakistan’s IT industry generated over $3.5 billion in revenue.
  • Number of IT Companies: Pakistan is home to thousands of IT companies, ranging from small startups to large multinational corporations.
  • Internet Infrastructure: Pakistan boasts a well-developed internet infrastructure with a high penetration rate. Major cities like Karachi, Lahore, and Islamabad have robust broadband connectivity, supporting the needs of tech companies and remote work.
  • Universities and Education: Pakistan’s top universities, such as National University of Sciences and Technology (NUST), Lahore University of Management Sciences (LUMS), and COMSATS Institute of Information Technology, offer highly regarded computer science and engineering programs. These institutions are known for their rigorous curriculum, research output, and strong ties with the tech industry, producing graduates who are well-prepared for the demands of the global IT market.

Benefits of Hiring Software Engineers in Pakistan

  • Exceptional Technical Proficiency: Pakistani software engineers are known for their advanced technical knowledge and problem-solving abilities, proficient in programming languages such as Java, C++, C#, JavaScript, and Python.
  • Culture of Innovation and Creativity: Pakistan’s tech sector thrives on innovation and creativity, fostering an environment where software engineers excel.
  • Cost-Effective Talent: Hiring software engineers in Pakistan is cost-effective, providing high returns on investment due to the skilled talent pool and strong technical education system.
  • Flexible Hiring Options: With Hyperion360, companies can hire Pakistani software engineers through various methods, including direct hiring through us or setting up a foreign entity in Pakistan with our legal partners’ assistance.
  • Thriving Tech Scene: Pakistan’s vibrant tech ecosystem is rich with innovative startups and established tech firms, offering ample opportunities for collaboration and growth.

Benefits of Outsourcing to Pakistan

Pakistan stands as a growing tech hub in Asia, offering numerous advantages for businesses:

  • A Robust Market: Pakistan’s diverse economy includes a strong tech sector, advanced manufacturing, and a growing service industry.
  • Strategic Trade Access: Pakistan’s strategic location provides access to major markets in Asia and beyond, enhancing its trade and business opportunities.
  • Advanced Infrastructure: Pakistan boasts modern infrastructure, including efficient transportation systems and world-class telecommunications, facilitating smooth business operations.

Common Pitfalls of Hiring Software Engineers in Pakistan

While Pakistan offers many benefits, there are some challenges:

  • High Demand for Talent: The demand for skilled engineers is high, leading to competition for top talent. Hyperion360’s extensive network and staffing solutions help you secure the best talent quickly and efficiently.
  • Regulatory Environment: Navigating Pakistan’s regulatory landscape can be complex. Hyperion360 helps manage legal and compliance aspects to ensure smooth operations.
  • Cultural Differences: Understanding and adapting to Pakistan’s business culture is crucial. Hyperion360 bridges cultural gaps, ensuring seamless interactions and successful collaborations.
  • Intellectual Property Concerns: Protecting intellectual property is vital. Hyperion360 offers guidance and support to safeguard your business assets.
  • Language Barriers: While many IT professionals speak English, regional language differences may still exist. Hyperion360 facilitates effective communication and integration with your team.

Hyperion360’s tailored solutions address these challenges, enabling you to successfully hire and manage software engineers in Pakistan with confidence and ease.

Business Etiquette in Pakistan

Understanding cultural nuances is vital for successful business interactions in Pakistan. Here’s a detailed guide to help you navigate these intricacies effectively:


  • Handshakes: Greet and leave colleagues with a firm handshake. This is customary for both men and women. When attending a meeting, address all colleagues individually when saying hello and goodbye.
  • Using Titles: Address colleagues by their titles and surnames to show respect.

Communication Style

  • Indirect Communication: Pakistanis often use indirect communication to maintain harmony and avoid confrontation. Reading between the lines and being mindful of non-verbal cues is important.
  • Politeness and Respect: Politeness and respect are crucial in all interactions. Avoid aggressive or confrontational behavior.

Timekeeping and Punctuality

  • Punctuality: Punctuality is highly valued. Arriving on time for meetings is a sign of respect and professionalism.
  • Networking: Building relationships through informal discussions and networking is common and important.

Value on Relationships

  • Personal Connections: Building strong personal relationships is essential for successful business dealings. Trust and rapport are crucial.
  • Hierarchical Structure: Business structures are often hierarchical. Respect for seniority and titles is important.

Business Meetings

  • Small Talk: Meetings often start with informal conversation to build rapport.
  • Networking Focus: Use meetings to strengthen relationships as well as discuss business matters.

By understanding and respecting these cultural nuances, you can foster better relationships and ensure successful business interactions in Pakistan. Hyperion360’s tailored solutions help you navigate these cultural intricacies with ease, enabling seamless integration and collaboration with your Pakistani team.

Employment Agreements

In Pakistan, while not mandatory, written employment agreements are strongly recommended to outline key conditions clearly. Essential elements to include are:

  • Remuneration: Specify salary and any additional compensation.
  • Job Description: Outline roles, responsibilities, and expectations.
  • Working Hours: Define standard working hours and any flexibility.
  • Place of Work: Mention the primary workplace and any remote work possibilities.
  • Probationary Period: State the duration and conditions of the probation.
  • Contract Type: Indicate whether the contract is fixed-term or indefinite-term.
  • Company Policies: Include relevant workplace policies and guidelines.
  • Travel and Transfers: Detail the conditions and possibilities for travel or relocation.

Some terms are automatically recognized under Pakistani law, such as:

  • The minimum wage
  • Annual leave entitlement and vacation bonus
  • Social Security payment requirements
  • Benefits provided by collective bargaining agreements

Probationary Periods in Pakistan

The maximum probationary period in Pakistan is three months. This allows employers to assess the suitability of the software engineer within a defined timeframe.

Pakistan Payroll Laws

Tax Due Date

Individual taxes in Pakistan are due by June 30, following the financial year from July 1 to June 30.

Payroll Cycle

The payroll cycle in Pakistan is generally monthly.

Working Hours

Standard working hours are typically eight hours per day and 48 hours per week.

Minimum Wage and Salaries

As of 2024, the minimum wage in Pakistan is PKR 32,000 per month, but it can vary by province and occupation.

Bonus Payments

It is common for employers in Pakistan to provide annual bonuses, often equivalent to one or two months’ salary, though it is not mandated by law.


Overtime work is compensated at a rate of twice the regular hourly wage.

Taxes and Social Security in Pakistan

Tax Thresholds in Pakistan

In Pakistan, individuals are considered tax residents if they stay in the country for more than 183 days in a calendar year. Tax residents are subject to tax on their worldwide income.

As of 2024, the Pakistani income tax brackets are as follows:

  • 0 - 600,000 PKR annually: 0.00%
  • 600,001 - 1,200,000 PKR annually: 2.5%
  • 1,200,001 - 2,400,000 PKR annually: 15,000 PKR + 12.50% on excess
  • 2,400,001 - 3,600,000 PKR annually: 165,000 PKR + 22.50% on excess
  • 3,600,001 - 6,000,000 PKR annually: 435,000 PKR + 27.50% on excess
  • 6,000,001 - 12,000,000 PKR annually: 1,095,000 PKR + 35.00% on excess

Corporate Tax Rate in Pakistan

As of 2024, the corporate tax rate in Pakistan is:

  • General Corporate Income: 29%

Social Security Rates in Pakistan

In 2024, the social security rates for employees and employers are as follows:

Employer Payroll Contributions in Pakistan

Employers in Pakistan are responsible for several additional payroll contributions, which include:

  • Employees Old Age Benefit (EOAB): 5% of the employee’s salary (applied on salary up to 384,000 PKR annually)
  • Total Employment Cost: 5%

Employee Payroll Contributions in Pakistan

Employees in Pakistan also contribute to their social security as follows:

  • Employees Old Age Benefit (EOAB): 1% of their salary (applied on salary up to 384,000 PKR annually)
  • Healthcare: 1% of their salary plus a 40-rupee flat rate each month
  • Total Employee Cost: 1% plus 40-rupee per month

Health Insurance in Pakistan

Pakistan has a mix of public and private healthcare systems. While public healthcare is available, many companies offer additional private health insurance to access enhanced medical services and shorter wait times.

Pension in Pakistan

Pakistan’s pension system includes mandatory contributions from both employers and employees. Employers contribute 5% of the employee’s salary to the Employee Old-Age Benefits Institution (EOBI).

Annual Paid Leave

Pakistani labor law guarantees employees annual paid leave based on their length of service:

  • 1-5 years: 14 days
  • 6-10 years: 18 days
  • 10+ years: 22 days

Parental and Maternity Leave

  • Maternity Leave: 12 weeks of paid leave, six weeks before and six weeks after the birth.
  • Paternity Leave: Up to two weeks of paid leave.

Sick Leave

Every employee is entitled to 10 days of Casual Leave (in addition to the annual leave) with full pay. This leave is granted upon certain situations such as sudden illness. A further 16 days of leave is entitled for Sick or Medical leave and paid at a rate of 50% of pay. Sick Leave requires a medical certificate to be issued.

Regional and National Holidays

Pakistan observes several national holidays, including:

  • Pakistan Day (March 23)
  • Labor Day (May 1)
  • Independence Day (August 14)
  • Eid ul-Fitr (varies)
  • Eid ul-Adha (varies)
  • Allama Iqbal Day (November 9)
  • Quaid-e-Azam Day (December 25)

Employment Benefits in Pakistan

Pakistan’s social security system includes labor insurance, national health insurance, and pension contributions, with contributions collected from both employers and employees.

Termination and Notice Period in Pakistan

Employers must provide notice of termination as follows:

  • Notice Period: At least one month’s notice or equivalent pay in lieu of notice.

Upon termination without cause, the employer must pay severance equivalent to one month’s salary for each year of service.

Understanding these aspects of employment benefits in Pakistan helps you navigate the complexities of hiring and managing staff. With Hyperion360, you can ensure compliance with local regulations while optimizing your global staffing strategy. Enhance your workforce with top Pakistani talent today!

Work-from-Home Arrangements and Remote Work in Pakistan

In response to the growing trend of remote work, Pakistan has implemented regulations to support flexible working arrangements:

  • Legal Framework: Pakistani labor laws allow for remote work arrangements, provided that both the employer and employee agree to the terms. Guidelines have been issued to support remote work practices.
  • Work Environment: Employers are responsible for ensuring that remote employees have a suitable work environment and necessary equipment.
  • Health and Safety: Employers must ensure that remote workers adhere to health and safety standards, including ergonomics and regular breaks.
  • Communication: Clear communication channels and regular check-ins are essential for remote work arrangements.

With Hyperion360 you don’t have to worry about compliance with local regulations for your Pakistani team.

How Hyperion360 Can Help You Hire Software Engineers in Pakistan

Navigating the complexities of hiring and managing software engineers in Pakistan can be challenging, but Hyperion360 simplifies the process with our comprehensive global staffing services. When you partner with Hyperion360, you pay us directly, and we take on all the legal and compliance risks, managing every aspect of HR, benefits, payroll, and local taxes.

Our Services Include:

  • Assuming Legal and Compliance Risk: Hyperion360 hires the software engineers directly, eliminating the legal risks of complying with Pakistani law for your company.
  • Managing HR Functions: We handle all HR-related tasks, from recruitment and onboarding to managing paid leave and termination, ensuring a smooth and efficient process.
  • Administering Benefits: Hyperion360 oversees employee benefits, including health insurance, retirement plans, and other statutory benefits, ensuring your workforce is well-supported and highly engaged.
  • Efficient Payroll Management: Our services include managing payroll cycles, payroll taxes, and bonus payments seamlessly. We handle all payroll processing, ensuring accuracy and timely payments for your software engineers.
  • Handling Local Taxes: The monthly fee you pay us for software engineers is inclusive of local payroll taxes, benefits, legal, HR, accounting, etc., so you can focus on your core business operations.

Benefits of Partnering with Hyperion360:

  • Access to Top Talent: Leverage our network to access a pool of highly skilled software engineers in Pakistan, ensuring you hire the best talent for your needs.
  • Streamlined Processes: Our integrated approach simplifies the hiring and management process, reducing administrative burdens and allowing you to focus on strategic business goals.
  • Cost-Effective Solutions: By managing HR, benefits, payroll, and compliance, we help you save time and resources, offering a cost-effective solution for expanding your team in Pakistan.
  • Comprehensive Support: From recruitment to ongoing management, Hyperion360 provides full support to ensure your Pakistani workforce is effectively managed and aligned with your business objectives.

With Hyperion360, you can confidently expand your tech team in Pakistan, leveraging our expertise to overcome common pitfalls and maximize the benefits of hiring skilled software engineers in this dynamic market.

Ready to hire software engineers in Pakistan? Contact us to learn more about how Hyperion360 can support your global staffing needs.

Ready to Hire Software Engineers in Pakistan?

Contact Us