Hajra Naz
The Pakistan Software Houses Association (P@SHA) has urged the government to support the IT industry. They want a tax-friendly package in the upcoming FY2025- 26 budget, set for June 10.
P@SHA Chairman Sajjad Mustafa Syed spoke to the media. He said that out of $700 million invested in Pakistan’s IT sector, $600 million came from P@SHA member companies. He emphasized the importance of stability, incentives, and long-term policies to sustain the growth.
Syed urged the government to ensure that the upcoming budget is entirely tax-free for the IT sector and that no new taxes are introduced. He proposed the implementation of a 10-year fixed tax regime (FTR) from 2025 to 2035, to be officially announced in the FY26 budget.
He further recommended that companies registered with the Pakistan Software Export Board (PSEB) continue to benefit from the 0.25% withholding tax rate even beyond 2026 under the fixed tax structure.
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Raising concerns about tax disparity, Syed pointed out that freelance and remote IT workers are taxed at just 1%, while salaried IT professionals face income tax rates as high as 35%. He called on the government to ensure fair and equal tax treatment across all segments of the IT workforce.
The chairman stressed the need to ease foreign currency inflows. He warned that without stable, long-term policies, Pakistan could lose key foreign investment in tech.
Syed also gave a serious warning. If business-friendly measures aren’t introduced, over 600,000 IT jobs may be at risk.
