PASHA Chairman Sajjad Syed appeared live on SAMAA TV to present the technology industry’s budget recommendations ahead of the federal budget for fiscal year 2026-27, urging the government to treat Pakistan’s information technology and information technology-enabled services sector as a key growth engine and to approach the upcoming budget with that recognition reflected in concrete policy decisions. At the centre of his message was a clear and direct appeal to the government not to alter the existing Final Tax Regime that currently governs the information technology sector, warning that any changes to this structure at a critical juncture for the industry’s export growth trajectory could undermine investor confidence and disrupt the momentum that has taken years to build.
Sajjad Syed highlighted three structural concerns that PASHA considers most pressing for the sector’s long-term competitiveness. The first is the issue of differential taxation applied to remote workers, which has created an uneven playing field between professionals working independently or for international clients and those employed by registered technology firms, a disparity that discourages formalisation and pushes talent toward informal arrangements that do not contribute to the official export base. The second is the complexity surrounding capital repatriation procedures, which has long been identified as a barrier for technology companies seeking to receive international payments efficiently and for overseas clients seeking assurance that their transactions with Pakistani firms can be settled without regulatory friction. The third is the level of capital gains tax, which Syed argued needs to be reduced to attract and retain investment in Pakistan’s technology ecosystem at a time when the country is competing with regional peers for the same pool of technology-focused capital.
The PASHA Chairman’s television appearance comes at a moment of significant opportunity and equally significant risk for Pakistan’s information technology sector. The country’s information and communication technology export remittances have reached a record $3.81 billion in the first ten months of fiscal year 2025-26, and the sector is targeting $4.5 billion for the full fiscal year, with longer-term government ambitions pointing toward $10 billion by fiscal year 2029. Sajjad Syed stressed that resolving the structural taxation and regulatory issues he outlined could meaningfully accelerate progress toward these targets, and that the budget represents a critical opportunity for the government to signal its commitment to the sector’s growth by maintaining policy stability rather than introducing changes that could create uncertainty for exporters, investors, and the large and growing community of technology professionals whose livelihoods depend on the continued health of Pakistan’s digital economy.
Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem.
