Pakistan's Animation and Gaming Industry — The Next Digital Frontier

ISLAMABAD — Pakistan's animation and gaming industry is emerging as a major frontier in the digital economy, with a gaming community expected to exceed 50 million by 2026 and the sector valued at $500 million, surpassing digital advertising in revenue. The country is projected to become one of the fastest-growing video game markets globally, with a 21.9 per cent growth rate, following Turkey and ahead of India.

The Ministry of IT and Telecom, through the Ignite National Technology Fund, plans to establish Centres of Excellence for Gaming and Animation in Karachi and Lahore with a budget of Rs2.5 billion. These centres aim to support gaming and animation startups and train 10,000 participants over the next five years.

Industry Landscape

Over 257 companies operate in animation, graphics, and gaming across Pakistan, employing 12,057 professionals. The sector generates $300 million in total revenue, with exports contributing $157.9 million. Mobile gaming dominates, accounting for 60 per cent of gamers, while 30 per cent play on PCs and 10 per cent on consoles.

• Local Studios — Pakistani firms are attracting venture financing, with international tech companies like Google and Epic Games supporting regional studios
• Export Markets — The Middle East and North Africa (MENA) region has emerged as a key market for Pakistani gaming and animation studios
• E-Sports Growth — Pakistani players are gaining international recognition in PUBG, Call of Duty, and FIFA, with e-sports offering revenue streams through streaming, sponsorships, and coaching

Government Initiatives

USAID, in partnership with Mindstorm Studio, launched an initiative to foster the digital gaming industry in Khyber Pakhtunkhwa, providing opportunities for youth and promoting game development as a viable career path. The government's National AI Policy 2025 and the 5G spectrum auction are expected to further boost the digital ecosystem.

Challenges

Despite the growth, the animation side of the industry faces significant challenges. Many studios work primarily as contractors for international clients rather than developing original content. A 2022 Dawn article posed the question: "Can Pakistan's gaming industry move on from 'copy-paste'?" — referring to the tendency of local developers to focus on hyper-casual clones rather than innovative original titles.

Future Prospects

The global market for animation, gaming, and graphics was valued at $626 billion in 2022 and is projected to exceed $1 trillion by 2030. With 64 per cent of Pakistan's population under 30, the potential for growth is enormous. Industry experts believe ventures into the Metaverse, Virtual Reality, and original intellectual property could transform the sector from a service-based model to a creator economy.