Communication and IT contain huge potential particularly for growing nations and in there sustainable growth. India and Pakistan two growing nations of Asia pacific now a day doing great performance in the field of IT and have different advantages on each other in this field. Indian city Bangalore is known as Silicon Valley of India due to its great contributions in IT field of the country. Karachi city of Pakistan also well recognized in this field. IT industry of both cities working under different IT policies like Karnataka state of India in which Bangalore city is located has its own IT policy under through this industry is going on and Karachi city of Pakistan which is situated in Sindh province of Pakistan has no IT policy and IT industry of Karachi city is working under National IT policy of Pakistan. Study based on how Karachi and Bangalore contribute in the economic development of their respective countries through IT industry, what kind of institutional arrangements both cities have in respect of innovation system and to know whether there is National Innovation System, Regional Innovation System or they are Industrial Clusters.