Pakistan app development are not as many people as before seem to be starting new businesses in Pakistan’s app development industry. Data Darbar and Appfigures’ State of Apps 2024 report claim the local Android app ecosystem shrunk by 55% and only 1,700 apps were developed. Considering the country has primarily been required Android apps, that’s pretty bad. There are changes, albeit slowly, in Pakistan’s digital ecosystem.
Despite the drop in Android app development, the iOS development ecosystem and its Pecking Order apps maintained equilibrium, with around 784 apps developed, similar to prior years. This isn’t a coincidence, industry insiders say, as developers perceive Apple’s App Store to be relatively more lucrative. Android is the most common operating system in Pakistan and developers find it especially unprofitable, with restrictive monetization options, low in-app purchases, and ad revenue.
Some people in the industry say that fewer Android apps are being created because of high costs of doing business, limited payment options, and low potential earnings. Windows apps, and especially cloud services, advertising and design tools costs also need to be covered. In Pakistan, balance of payments issues and inflation make the maintenance development costs of most people trying to keep active apps costly.
In Pakistan, the monetization of Android apps is less viable because of limited payment flows. Developers mostly do not know how to monetize their apps, and even after going through payment gateways, in-app purchases, and advertising networks. A lot of developers have given up on monetization and registered in the UAE, Singapore, or the UK, which makes their development leave the country. But, there are still domestic data reporting.
The biggest drop from the report is the amount of active app developers. With a drop of 26%, we went from 1,900 to 1,400 active app developers. That is the lowest amount for the last five years. Considering the amount of developers, there is a “digital brain drain”. Pakistan’s talented computer programmers, coders, and app developers are either leaving the country or finding clients abroad because of better pay and more secure jobs.
This is troubling as Pakistan used to be a promising technology ecosystem. With a more young and developing population, the country had more than enough parts of a healthy app ecosystem. The lack of a dependable policy framework and financial sector support has made the dream of a Regional Technology Hub more difficult to achieve.
In the contrary, Pakistan’s app accessibility is growing, while the local development of apps is declining. Millions of users in Pakistan are engaging in platforms for entertainment, shopping, education, and fintech increasing the number of users in Pakistan which is among the highest in the world. The problem is the majority of these apps are developed from countries outside Pakistan.
Since the pattern is showing these results, Pakistan can run the risk of becoming a consumer nation, rather than a creator or innovator in the digital economy. In this case, Pakistanis will use the latest global applications, but will be of little consequence when it comes to influencing the next form of innovative tech.
Even though Apple’s iOS market share is still relatively lower in Pakistan, at under 10% of all smartphones, many developers are still switching their focus to iOS. This is likely due to the fact that the App Store recoups better returns on in-app purchases, premium app prices and advertising. In addition, iOS users have a greater disposable income, so developers can make more money, even with a lower app download or use rate.
Tools such as Flutter and React Native have made it easier for developers to create cross platform apps, and thus target both iOS and Android users from a single codebase. Still, the lack of a streamlined policy for payment processing will continue to make it a challenge for developers.
Pakistan needs a comprehensive policy that promotes digital access, especially regarding monetization, taxation, and international payment access. Local creators could be brought into the global competitive market if regulations around PayPal, Stripe, and Google Play payments are simplified.
Eased digital policy regulations will attract investment in tech education and incubation programs that support startups and indie devs. Low-interest loans, grants, and foreign support raised the talent bar in multiple fields. While the government promotes freelancing and e-commerce, app development needs its own focus.
By the data, the market should anticipate the development of digital service applications. Edtech, health applications, and fintech are the primary drivers of the industry. Digital policies and supportive systems provide the app development industry the rebuilding potential. With systems like these, the industry could be re-engineered, and replace it with more innovative, robust systems.
All said the story of the app industry in Pakistan in 2024 is one of decline, and also, it is a wake-up call. It is a need for local developers to have more than just a pat on the back. If that continues to be the case, Pakistan will keep on downloading applications from outside countries and miss the chance to build its own digital future.
