Pakistan’s IT sector became the country’s fastest growing export industry, with projections showing that it will reach $4 billion in exports by FY25. The results represent a 25% growth from the $3.2 billion achieved in FY24.
The verdict was confirmed by P@SHA’s Senior Vice Chairman Muhammad Umair Nizam. The sectors were discussed in a session in Karachi. Important industry leaders attended the event, exploring sector performance and its benefits.
Industry representatives expressed satisfaction with the recent government steps but emphasized the need for urgent regulatory reforms from the FBR and SBP. Outdated regulations were creating bottlenecks as the sector expanded into new areas.
P@SHA proposed a 10 year tax holiday and other measures in the upcoming federal budget. The session addressed the taxation difference between salaried IT professionals and freelancers as a critical issue.
While employees face income tax rates of up to 35%, freelancers enjoy significantly lower rates. This imbalance risks driving skilled professionals away from formal employment. Former Chairman Muhammad Zohaib Khan emphasized IT’s unique position as Pakistan’s only sector with a 75% trade surplus.
The industry has the potential to create jobs, build skills, and improve Pakistan’s external accounts. Proper policy support could significantly accelerate this growth. Participants agreed that the sector needs faster development of Special Technology Zones and IT parks.
Banking facilitation and foreign exchange rule reforms were also identified as priority areas. These changes would enable Pakistan to capitalize on its IT export potential. The session concluded with a call for balanced policies to sustain the sector’s growth momentum.
Industry leaders emphasized the importance of fair taxation and regulatory reform. With proper support, IT could become a cornerstone of Pakistan’s economic recovery.