Pakistan's information technology (IT) sector is targeting $4 billion in exports for the current fiscal year. Industry leaders are advocating for regulatory reforms and a ten-year tax holiday to sustain the sector's growth.
The IT industry is a priority for the government, playing a key role in boosting export revenues. The "Uraan Pakistan" initiative, launched in December 2024, aims to increase IT exports to $10 billion by 2029.
The Pakistan Software Houses Association (P@SHA) has submitted budget proposals to the government. These proposals call for streamlined foreign exchange regulations and the removal of sales tax anomalies. P@SHA has also raised concerns about the disparity between income tax rates for salaried IT employees and freelancers, arguing that the current system discourages formal employment.
According to Muhammad Umair Nizam, Senior Vice Chairman of P@SHA, Pakistan's IT exports stood at $3.2 billion in the previous fiscal year, with the prospect of 25% year-on-year growth. P@SHA cautions that regulatory hurdles and inconsistent tax policies impede the sector's progress.