Pakistan’s information technology sector is poised to hit a new milestone, with projected exports reaching $4 billion in fiscal year 2024–25, according to Muhammad Umair Nizam, Senior Vice Chairman of P@SHA. The announcement reflects a significant jump from the $3.2 billion recorded in the previous fiscal year, marking an anticipated year-on-year growth of 25 percent. The sector’s performance continues to solidify its position as the country’s fastest-growing export industry and a crucial component of Pakistan’s economic resilience and forward-looking development agenda.
The declaration came during a high-level CXO session organized by P@SHA in Karachi, where the country’s top technology firms gathered to assess industry trends, strategize around emerging challenges, and outline a collective vision for sustainable growth. The event brought together CEOs and senior executives from leading IT export companies, fostering a collaborative space to engage in policy dialogue and private sector alignment. In attendance were P@SHA’s key officeholders including Raheel Iqbal, Vice Chairman; Haris Naseer, Treasurer; and Central Executive Committee members Munaf Majeed, Usman Akbar, and Hassan Bin Rizwan.
During the session, industry leaders expressed general satisfaction with the collaborative initiatives being driven by the Prime Minister’s Office, MoITT, SIFC, and PSEB. These institutions have been instrumental in setting a pro-growth tone and providing critical institutional support to the tech sector. However, there was a clear and unified call for more rapid and responsive regulatory reforms from FBR and SBP. The participants emphasized the urgency of easing compliance hurdles, simplifying foreign exchange policies, and aligning taxation frameworks with the digital economy’s dynamic nature.
Umair Nizam stated that the IT sector is evolving into new verticals and tech domains at a pace that outstrips the current policy framework’s ability to adapt. He stressed the need for a forward-looking regulatory environment that not only matches but accelerates this transformation. As the government prepares to unveil the Federal Budget 2025–26 in June, P@SHA has submitted a detailed set of proposals advocating a robust pro-investment and pro-business approach tailored specifically for ITeS sector.
Among the industry’s top priorities are the introduction of a 10-year tax holiday to attract new domestic and foreign investment, comprehensive streamlining of foreign exchange controls, and targeted facilitation from commercial banks to improve capital accessibility for tech firms. Other critical asks include the removal of inconsistencies in sales tax policies across provinces, increased funding for digital skills development, and faster implementation of STZs and dedicated IT parks to provide infrastructure and incubation for innovation.
One of the more pressing issues raised during the discussions was the stark disparity in tax treatment between salaried IT employees and freelancers. Umair Nizam pointed out that while freelancers enjoy a tax rate of only 0.25 to 1 percent, salaried professionals are taxed at rates of up to 35 percent. This imbalance, he argued, discourages employment in formal IT firms and disincentivizes the retention of high-value talent within structured business environments. P@SHA is urging policymakers to address this inequity in the upcoming budget cycle to encourage professional workforce development.
Former Chairman of P@SHA, Muhammad Zohaib Khan, underscored the sector’s strategic economic value by highlighting that IT remains the only export sector in Pakistan with a trade surplus nearing 75 percent. Unlike other industries, IT services and products have the potential to scale rapidly, absorb a growing young workforce, and generate significant employment opportunities without the need for heavy physical infrastructure. He noted that an empowered IT industry can play a critical role in narrowing the country’s trade deficit and maintaining macroeconomic stability by strengthening both the current account and external account positions.
As the country navigates its broader economic recovery, the IT sector’s resilience, innovation, and growth trajectory make it a standout player in Pakistan’s export economy. The outcome of the upcoming federal budget and the responsiveness of key regulatory bodies will be closely watched as indicators of the government’s commitment to unlocking the full potential of Pakistan’s digital future.
