Pakistan's IT exports set to hit $4bn amid calls for tax reforms
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Pakistan's information technology sector expects exports to reach $4 billion in the current fiscal year, industry leaders said on Saturday, while urging the government to implement regulatory reforms and a decade-long tax holiday to maintain momentum.
Reported in Arab News, the IT industry, a key pillar of Pakistan's economic strategy, has been prioritized under the 'Uraan Pakistan' initiative launched last December. The programme aims to boost IT exports to $10 billion by 2029, offering a potential lifeline to the country's struggling external accounts.
Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), said the IT sector had emerged as the country's fastest-growing export industry. Pakistan's IT exports stood at $3.2 billion last fiscal year, and are now projected to grow by 25% year-on-year to hit $4 billion in FY25.
However, P@SHA warned that regulatory hurdles and inconsistent tax policies risk stalling progress at a critical time when new tech sub-sectors are rapidly developing.
The association has submitted detailed budget proposals to the government, calling for an overhaul that includes streamlined foreign exchange regulations, better banking support, the removal of sales tax anomalies, and accelerated development of special technology zones and IT parks.
Pakistan's IT sector is currently the country's only industry with a trade surplus of around 75%, highlighting its potential to create jobs, nurture skilled human capital, and help close the trade deficit sustainably, P@SHA noted.
The group also flagged concerns over the disparity between income tax rates for salaried IT employees and freelancers, arguing that the current system discourages formal employment and must be urgently addressed in the upcoming federal budget.
Industry leaders believe that with supportive policies, Pakistan's IT sector could achieve exponential growth and become a key driver of economic stability in the years ahead.
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