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Business Recorder
18-07-2025
- Business
- Business Recorder
Pakistan's IT exports surge to all-time high of $3.8 billion in FY25
Pakistan's IT exports continued their strong growth trajectory, reaching a record high of $3.8 billion in the financial year 2024-25, driven by innovation and quality service delivery. According to the State Bank of Pakistan (SBP), exports of IT and IT-enabled services rose to $3.8 billion in FY25, up from $3.2 billion in the previous year—reflecting a year-on-year growth of 18%. The IT sector remained the third-largest source of foreign exchange for Pakistan, following the textile and rice sectors. It also accounted for the largest share—45%—of the country's total services exports by the end of FY25. Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), Muhammad Umair Nizam, said IT exports have shown consistent growth over the past several years, significantly contributing to the national economy, particularly in helping stabilize the current account, which recorded a surplus this fiscal year. He noted that Pakistan's IT sector could have earned even more foreign exchange if favorable policies had been introduced in a timely manner and if unpredictable national and global challenges had not emerged. He added that the IT industry, in collaboration with its representative body P@SHA and key government organizations—including the Ministry of IT and Telecommunication, Pakistan Software Export Board (PSEB), and the Special Investment Facilitation Council (SIFC)—is actively working to promote the domestic IT sector and boost exports. 'Once the government resolves outstanding challenges, IT companies will be better positioned to attract increased foreign exchange through exports,' Nizam said. In the last fiscal year, the government allowed IT companies to retain 50% of their foreign currency earnings in special forex bank accounts. It also introduced cash rewards for top exporters and addressed tax reporting issues. Mehwish Salman Ali, a member of P@SHA's AI Committee, said that export values can rise further through the adoption of cutting-edge technologies, offering advanced solutions to international markets to secure higher profit margins. She emphasized that Pakistani companies should accelerate innovation and cater to emerging demands, particularly in areas such as Artificial Intelligence, Machine Learning, and Cybersecurity. She also highlighted the importance of capacity building among IT professionals and fostering joint ventures with foreign companies in various regions. The government, along with IT companies, has made investments in promoting Pakistan's IT sector, showcasing its solutions and services in the Gulf, Europe, and ASEAN countries. Khushnood Aftab, Convener of the IT Committee at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), stressed that the government should diversify not only export markets but also the range of IT products. He noted that while Pakistan currently exports IT hardware in limited volumes, innovation in technology could boost exports of hardware such as computers, laptops, and various devices. This would not only bring in foreign exchange but also foster technology transfer in the country. Aftab, who is also Chairman of Viper Group, said Pakistan could enhance its global reputation by promoting 'Made-in-Pakistan' IT hardware products. The government has set an ambitious target of $5 billion in IT exports for FY26, and $10 billion by FY29, under its Uraan Pakistan vision.
Business Recorder
09-07-2025
- Business
- Business Recorder
Pakistan's software services exports surge to over $1bn for first time
Pakistan's export of software services has seen consistent growth over the last few years, surpassing $1 billion in an 11-month period for the first time in history. According to data released by the State Bank of Pakistan (SBP), the country earned foreign exchange of $1.01 billion through the export of software services during the period between July and May in the current financial year. This was an increase of 27.4% when compared to the $793 million figure reported in a similar period in the previous year. Overall exports of IT and Information Technology Enabled Services (ITeS) stood at $3.47 billion during the said period, of which the highest share was that of software consultancy services (29.1%.) Pakistan Software Houses Association (P@SHA) Senior Vice Chairman Muhammad Umair Nizam told Business Recorder that software consultancy services remain the main strength of Pakistan's IT industry, driving overall IT exports to an all-time high. He said the government and the Special Investment Facilitation Council (SIFC) are aggressively exploring new markets, including the Gulf, the Association of Southeast Asian Nations (ASEAN) and the European region to enhance its exports of software consultancy and other services. He added that these initiatives will further boost Pakistan's software exports with the efforts of IT companies and organisations like the Pakistan Software Export Board in the next few years. The IT sector fetched $534 million from computer software, $298 million from call centers, and $199 million from telecommunication services, according to data released by the central bank. Dr Noman Said, an IT exporter and CEO of SI Global Solutions, said the increase in exports of IT and IT-enabled services must be linked to efforts of IT companies as well as the regulatory facilitation of the government. However, he believes IT companies need to transform challenges into opportunities with the emergence of AI tools and solutions, which are scaling down the service demand of companies and professionals across the country. He suggested that IT companies should focus on targeting mega projects in foreign markets, including software and hardware services, and the installation of IT applications in diversified sectors. Pakistan is set to touch $4 billion in exports of IT and IT-enabled services. However, it may slightly miss the target by $100 to $150 million in the closing financial year 2024-25 due to internet disruption, analysts say.
Business Recorder
18-06-2025
- Business
- Business Recorder
‘IT exporters, freelancers': SBP eases reporting formats
KARACHI: The State Bank of Pakistan (SBP) has revised the reporting formats of the electronic Proceed Realization Certificate (ePRC) and Statement of PRCs (S-PRCs) to facilitate IT exporters, freelancers, and other service providers. The revision of the electronic certificate format has been along-standing demand of IT companies and freelancers to report their foreign exchange income in local and foreign currency for the purpose of tax payments. The banking regulator advised banks to ensure issuance of ePRC andS-PRCs, as per the new formats w.e.f. the 1st October 2025. Any system-related developments should be made at the earliest to ensure compliance with the above timeline, the circular issued by the SBP stated. IT exports grow 25pc in 9MFY25: minister The banking regulator introduced electronic certificates for reporting foreign remittances, e-PRC and S-PRCs, in August 2022; however, it requires updates from time to time since its utility has increased significantly. PRC is a proof of funds issued by banks when a customer receives them from abroad in his account in Pakistani rupee. It shows that funds such as workers' remittances, export proceeds, equity investments, and borrowing from abroad have been received from abroad and realised in Pakistan in rupees. The beneficiary of funds can obtain this certificate (e-PRC) upon receipt of funds in his bank account in Pakistan, or as cash over the counter, from a bank. Furthermore, banks will issue a statement of PRCs (S-PRC) electronically to their customers, mentioning all remittances received by them from abroad during a year. Chairman and Co-Founder Pakistan Association of Freelancers (PAFLA) Ibrahim Amin said that the revised format of earning details will benefit freelancers and country alike as their tax dedication will not be made multiple times; hence, they will be able to save their hard-earned money and share foreign exchange more with the country. The new format will also facilitate the tax authority to deduct tax on the current income of freelancers rather than overall income based on the bank statement that also included income from other resources of the freelancers. Over $400 million IT remittances were received in the nine months of the current financial year whereas the IT exports stood at $2.7billion during the same period. Senior Vice Chairman (PASHA) Muhammad Umair Nizam said the country may receive an increase of foreign exchange from the IT exporters same as it witnessed the revision of retention rate in the foreign exchange bank account for IT companies and freelancers. He praised the efforts of the IT association, the concerned ministry, Pakistani Software Exports Board (PSEB) and Special Initiative Facilitation Council (SIFC) for addressing the issues of IT exporters timely for a long-term and sustainable growth of exports and industry. He urged the government for addressing key issues of the IT industry related to taxes at the earliest for supporting exports of IT and IT-enabled services to grow further for achieving the target of $25billion per annum by FY29. Copyright Business Recorder, 2025
Express Tribune
26-04-2025
- Business
- Express Tribune
IT firms demand major tax reforms
Listen to article Pakistan's Information Technology (IT) companies have strongly demanded the government to rationalise taxes on the IT sector in order to enhance its exports manifold in the coming years. Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), called for a major reduction in the burden of income tax on employees' salaries from the current 35% to a flat 5% in order to facilitate IT companies in maintaining their exports growth. This step, he explained, would help IT companies match the competitiveness of remote workers in the IT sector who are paying a minimal tax rate of just 1% as freelancers. "P@SHA is looking forward to the government granting a 10-year tax holiday to encourage new foreign and domestic investments, the streamlining of foreign exchange regulations, greater facilitation from commercial banks, the removal of anomalies in sales tax, the allocation of dedicated funds for skill development and the acceleration of the operational materialisation of Special Technology Zones (STZs) and IT parks across the country," he said. He stressed that the government should urgently do away with the heavy 10% tax currently imposed on the transaction of debit cards linked to foreign exchange accounts, as this eats up a huge share of the earnings of IT companies and severely impacts their profitability. Highlighting the sector's potential, he said that information technology has now become the fastest-growing export industry of Pakistan, and the country is poised to achieve a record $4 billion in its IT exports for the fiscal year 2025, covering the period from July 2024 to June 2025. Nizam also pointed out that Pakistan is rapidly expanding into new sub-sectors and verticals across various spheres of technology, but expressed concern that conventional regulatory frameworks continue to create bottlenecks due to their inability to adapt to the fast-paced evolution of the global tech industry. "P@SHA's role is to translate the needs and demands of our member companies into policies, incentives, and actions. Whether it's about export taxation, ease of doing business, payroll taxation, international visibility, or digital infrastructure - we take those concerns straight to the power corridors," he added. Mehwish Salman, an award-winning serial entrepreneur and CEO of Datavault Pakistan, stated that the government must allocate a handsome portion of the national budget toward promoting emerging technologies, such as artificial intelligence, cybersecurity, the internet of things, and data engineering, to grow the country's exports and foster greater adaptation of digitisation across various sectors. In this regard, she said the government should continue its capacity-building programmes by partnering with IT companies to arrange boot camps in various cities, aiming to upskill working professionals and bring them up to par with global standards. Salman also stressed that the government should introduce subsidies for female professionals seeking certifications and specialised training, along with scholarships for female students, in order to encourage and significantly increase their contributions. "Through effective industry-academic liaison, we need to upgrade our curriculum based on emerging technologies at both private and public sector universities to meet the increasing demand for highly skilled human resources in the country's IT sector," she said. She further suggested that the applications of AI tools and coding should be introduced to students at the secondary school level, which would promote a culture of research, development, and innovation among the younger generation. Meanwhile, former Chairman of P@SHA, Muhammad Zohaib Khan, said that IT remains the only industry in Pakistan with an industry trade surplus in the vicinity of 75%, and pointed out that it is the only sector that can grow at an exponential rate, develop a skilled workforce, create employment opportunities rapidly, help curtail the country's growing trade deficit, and keep the current and external accounts healthy.
Express Tribune
26-04-2025
- Business
- Express Tribune
Pakistan's IT exports set to hit $4bn amid calls for tax reforms
Listen to article 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.
