Pakistan’s information technology (IT) sector is projecting exports to hit $4 billion in the current fiscal year, while calling for regulatory reforms and a 10-year tax holiday to maintain its growth momentum, according to the country’s top software association.
As one of the government’s key priority sectors, the IT industry plays a central role in Pakistan’s strategy to increase export revenues and stabilize its external financial position.
Under the “Uraan Pakistan” initiative, launched in December last year, the government aims to raise IT exports to $10 billion by 2029.
Industry leaders note that despite broader economic challenges, the IT sector remains one of the few areas capable of delivering exponential growth.
“Information technology has become Pakistan’s fastest-growing export industry, and the country is on track to achieve $4 billion in IT exports for FY25,” said Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA). He added that exports stood at $3.2 billion in the previous fiscal year, reflecting a potential year-on-year growth of 25%.
However, P@SHA cautioned that regulatory hurdles and inconsistent tax policies continue to impede the sector’s progress, especially as new tech sub-sectors emerge.
The association has submitted comprehensive budget proposals to the government, advocating for a more supportive regulatory framework. Key recommendations include simplifying foreign exchange regulations, enhancing banking sector support, addressing sales tax discrepancies, and accelerating the development of special technology zones and IT parks.
P@SHA also highlighted that the IT sector is the only industry in Pakistan with a trade surplus of approximately 75%, underscoring its capacity to generate employment, cultivate skilled talent, and sustainably reduce the trade deficit.
