Latest news with #P@SHA
Business Recorder
5 days ago
- Business
- Business Recorder
AI policy can revolutionize Pakistan's economy, say experts
IT sector experts and stakeholders hailed the government's comprehensive National Artificial Intelligence (AI) Policy, terming it a milestone towards revolutionizing economic development in the country within next few years through collaboration and implementation in true letter and spirit. They said the policy will open a new era of opportunities for Pakistan, as it can not only attract local and foreign investments, but could also increase exports of high-tech services and products. Prime Minister Shehbaz Sharif approved the National AI Policy 2025 in a cabinet meeting recently which aims to create a complete AI ecosystem in Pakistan and democratize access to AI, enhance public services, as well as open up new employment and innovation avenues. AI education According to Mehwish Salman Ali, Member AI committee at Pakistan IT industry association, P@SHA, Pakistan needs to collaborate with local and foreign universities and training institutions to prepare human resources for AI, including 10,000 trainers and 1 million IT graduates in the next two years, which requires joint efforts and a uniform structure. In this regard, top IT companies along with universities should not only launch relevant degree programs but also establish innovation centers in major cities to provide platforms to professionals for working on new ideas along with upskilling and capacity-building, she added. She also suggested that the government should build state-level relationship with advanced countries and emerging economies such as Gulf countries for collaborations on various AI projects for mutual benefits and trade ties. The National AI policy outlines training 1 million AI professionals by 2030, establishing an AI Innovation Fund and AI Venture Fund to boost private sector involvement, creation of 50,000 AI-driven civic projects and 1,000 local AI products in the next five years, distribution of 3,000 annual AI scholarships and facilitation of 1,000 research projects, inclusion of women and differently-abled individuals through accessible education and financing, strengthening cybersecurity and national data security protocols, promoting global partnerships and compliance with international AI regulations. Further, an AI Council and a comprehensive master plan and action matrix will oversee the policy's implementation under the policy. $10 billion IT exports Senior Vice Chairman P@SHA Muhammad Umair Nizam said the policy will prove as a roadmap for achieving major milestones on business, technology and economic fronts in Pakistan. This policy may play a pivotal role in achieving the target of $10 billion IT exports by FY29 , and open windows of opportunities for investments in IT and allied companies, he said. However, the government should provide basic infrastructure for reaping the benefits of this policy, including fast internet, affordable devices, electricity, and workstations in different cities, he added. The government should also launch awareness campaigns nationwide because the country not only need professionals and developers of AI but also ethical and productive users of this technologies, he further said. P@SHA said it will extend its full support in the ambitious goal of the government through its members. Meanwhile Dr Noman Said, an IT exporter and CEO SI Global Solution said 'Pakistan's draft National Artificial Intelligence Policy is an encouraging and much-needed step toward creating a future-ready digital economy, but it is not short of vision as Pakistan's history with tech policies is riddled with delays and diluted impact.' 'To make this count, we must act decisively, cut red tape, and deliver early wins that demonstrate credibility. The real challenge isn't crafting a policy, it's turning it into progress.' The policy sets goals stretching to 2028, while AI globally is evolving every 6–12 months, hence, the country must move at the speed of innovation, not bureaucracy, he suggested. While the creation of different institutions is proposed, success will depend on whether these institutions are led by technocrats and industry experts or bogged down by administrative hurdles, Dr Noman said. The private sector, particularly startups and SMEs, must be incentivized with regulatory sandboxes, tax breaks, and access to public datasets to drive adoption and innovation from the ground up. He pointed out that the policy mentions international collaboration but must act fast to align with global AI alliances. ' If we don't integrate now, we risk becoming data consumers, not contributors.'
Express Tribune
20-07-2025
- Business
- Express Tribune
Software body demands predictable tax system
Listen to article The Pakistan Software Houses Association (P@SHA) has called on the government to come up with a long-term, predictable tax and compliance framework for the technology and IT-enabled services (ITeS) sector. P@SHA's "Continuity & Consistency" reform package, delivered to the Ministry of Finance ahead of the Finance Bill, lays out some changes that will slash compliance costs, bring tens of thousands of remote digital workers into the formal tax net and catalyse domestic and foreign investment into Pakistani tech firms. "Every serious investor, local or international, asks the same two questions: what will my tax exposure be and will the rules change after I invest?" said the association chairman in a statement issued on Saturday. "Right now, innovators spend too much time navigating overlapping regimes and too little time building export products. If we hard-code continuity and make compliance near effortless, capital will move to Pakistan." The association has proposed a number of priority actions to the government for early adoption. These include the continuation of the 10-year final tax regime for IT/ITeS export income, removal of discrepancies in tax rates where Pakistani IT companies get penalised for running payrolls from the country, creation of a Roshan Digital Account-style channel for the IT sector for quick foreign currency receipts, transparent conversion, optional retention, straight-through data to the Federal Board of Revenue (FBR), rationalisation of super tax, exemption from capital gains tax to secure investor confidence, harmonisation of provincial sales tax on services and removal of duplicating labour-linked levies (Employees Old-age Benefits Institution, Sindh Employees Social Security Institution, Punjab Workers Welfare Fund and overlapping provincial labour rules) or consolidate them via a single digital window tailored for knowledge workers. P@SHA asserted that the requested changes were not subsidies; rather they would promote digitalisation and lead to administrative simplification.
Arab News
19-07-2025
- Business
- Arab News
Pakistani tech firms urge 10-year tax stability, one-window compliance to ‘supercharge' exports
KARACHI: Pakistan can unlock billions in tech investment if it gives investors predictable taxes, friction-free remittances and a single digital compliance experience, the Pakistan Software Houses Association (P@SHA) said on Friday. P@SHA said it presented a 'Continuity & Consistency reform package' to the Ministry of Finance earlier this year, laying out a small number of high-impact changes that would slash compliance costs, bring tens of thousands of remote digital workers into the formal tax net, and catalyze both domestic and foreign investment into Pakistani tech firms. The requested changes are not subsidies; they are predictability, digitalization, and administrative simplification. Most steps can be budget-neutral or revenue-positive once increased documentation, broadened compliance, and higher recorded export flows are taken into account. 'Every serious investor, local or international, asks the same two questions: What will my tax exposure be, and will the rules change after I invest?' P@SHA Chairman Sajjad Syed said. 'Right now, innovators spend too much time navigating overlapping regimes and too little time building export-earning products. If we hard-code continuity and make compliance near effortless, capital will move to Pakistan.' Pakistan tech firms have been demonstrating their growing potential in the IT sector by showcasing their products and services at global forums, including the LEAP tech conference in Riyadh and GITEX global exhibition in Dubai. Pakistan recorded monthly IT exports of $338 million in June, up by 14% year on year and by 3% month on month, according to Karachi-based Toplines Securities brokerage and market research firm. This took Pakistan's annual IT exports to $3.8 billion, up by 18% YoY, in the outgoing fiscal year that ended in June. In its statement, P@SHA urged continuation of the 10-Year Final Tax Regime (FTR) on information technology/IT-enabled services (IT/ITeS) export income, removal of discrepancies in tax rates where Pakistani IT companies get penalized for running payrolls from Pakistan, exemption of the Capital Gains Tax to secure investor's confidence among other measures. The association proposed joint working sessions with the Federal Board of Revenue, Ministry of IT & Telecom, State Bank of Pakistan, National Tax Council, and provincial revenue authorities to translate its proposed reforms package into draft language, digital filing flows, and phased rollout milestones, recommending immediate start of technical work. 'Pakistan stands at an inflection point: with its young talent base, global client footprint, and expanding startup ecosystem, the country can compete for high-value digital work, if investors trust the rules,' it said. 'P@SHA urges policymakers to seize this moment to send that signal.'
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
12-07-2025
- Business
- Business Recorder
EOBI gains global recognition at ILO conventions: minister
ISLAMABAD: Federal Minister for Overseas Pakistanis and Human Resource Development, Chaudhry Salik Hussain, emphasized that social protection is not a barrier but a cornerstone for sustaining the IT industry's global reputation. He noted that the Employees' Old-Age Benefits Institution (EOBI) has gained international recognition and has been commended at International Labour Organization (ILO) conventions in Geneva — underscoring its credibility and importance. The Minister made these remarks at a high-level seminar titled 'Ease of Doing Business for the IT Industry,' held at the Prime Minister's Office. The event was jointly organized by EOBI and the Special Investment Facilitation Council (SIFC), and brought together key government officials and leaders from Pakistan's tech ecosystem. Among the attendees were Federal Minister for Information Technology & Telecommunication Shiza Fatima, Secretary OP&HRD Nadeem Aslam Chaudhry, Director General SIFC and his team, as well as representatives from the Pakistan Software Houses Association (P@SHA). In his opening remarks, Dr. Jawaid Ahmed Sheikh, Chairman EOBI, highlighted the institution's central role in providing pension benefits and long-term financial security to workers in cases of retirement, disability, or death. He reaffirmed EOBI's commitment to evolving alongside the dynamic needs of the IT sector. Sajjad Mustafa, Chairman of P@SHA, thanked EOBI for initiating this important dialogue and proposed the formation of a joint working group to collaboratively address challenges related to contribution recovery and compliance. Echoing this sentiment, Ali Hasani, Secretary General of P@SHA, welcomed the establishment of a dedicated help desk for the IT sector, viewing it as a model that could inform consistent policy implementation across other industries. A technical presentation by Muhammad Amin, Deputy Director General Operations at EOBI, provided an overview of the organization's comprehensive social protection framework—which includes support not only for retirement, but also in cases of disability and death, tailored for the needs of the modern workforce. Federal Minister for IT & Telecommunication Shaza Fatima stressed the need for digital transformation, responsive service delivery, and regulatory agility to keep pace with the fast-changing tech landscape. She endorsed the proposal for a joint working group, recognizing its potential to close the gap between policy and execution. The seminar concluded with a shared commitment to strengthening institutional collaboration and aligning policies to create an enabling business environment for IT companies—while upholding internationally recognized standards of worker protection in Pakistan. Certificates of appreciation were awarded to key IT sector employers in recognition of their contributions to EOBI. Copyright Business Recorder, 2025
