Pakistan eyes $4bn in IT exports as industry calls for business-friendly policies

ISLAMABAD: Pakistan’s information technology sector is on course to achieve $4 billion in exports in the next financial year, according to the Pakistan Software Houses Association (P@SHA).

Muhammad Umair Nizam, Senior Vice Chairman of P@SHA, said IT exports had already reached $3.2 billion in FY24, and the industry is hopeful for a 25 per cent year-on-year growth in FY25. He was speaking at a high-level gathering of the country’s leading tech firms in Karachi, where industry executives discussed opportunities and challenges facing Pakistan’s IT sector.

The event brought together CEOs and senior leaders from exporting companies, alongside P@SHA’s top office bearers. Discussions centred on trends in global technology markets, the need for better infrastructure, and how Pakistan could attract more international investment.

Nizam noted that the industry had appreciated recent initiatives by the Prime Minister’s Office, the Ministry of IT and Telecom, the Special Investment Facilitation Council (SIFC), and the Pakistan Software Export Board. However, he underlined the need for the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) to move faster on regulatory reforms to keep pace with the industry’s rapid expansion.

A major concern raised was outdated regulations, which many believe are stifling growth in emerging tech sectors. P@SHA has submitted detailed budget proposals ahead of the Federal Budget 2025-26, expected in early June, calling for a 10-year tax holiday, streamlined foreign exchange rules, banking facilitation, and measures to correct tax anomalies.

One glaring disparity highlighted was the difference in taxation between salaried employees, who can pay up to 35 per cent, and freelancers, who are taxed at just 0.25 to 1 per cent. Industry leaders argue this imbalance needs urgent correction to retain skilled talent.

Muhammad Zohaib Khan, former Chairman of P@SHA, pointed out that IT remains Pakistan’s only sector with a trade surplus of around 75 per cent. He said the industry holds vast potential to create jobs, develop a skilled workforce, and help narrow the country’s trade deficit.

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