The Pakistan Software Houses Association (P@SHA) has called on the federal government to not introduce any new taxation and a business-friendly package for the country’s information technology sector in the upcoming fiscal budget, set to be presented on June 10.
In a statement to the media, P@SHA Chairman Sajjad Mustafa Syed disclosed that of the $700 million invested in Pakistan’s IT industry, $600 million originates from companies affiliated with the association.
He emphasised the sector’s dependence on stability, consistent policies, and supportive incentives to ensure continued growth.
“We are urging the government to implement a fixed tax regime for the next ten years, from 2025 to 2035, and to commit to this in the FY26 budget,” said Syed.
Syed also advocated for the continuation of the 0.25 percent withholding tax rate for companies registered with the Pakistan Software Export Board (PSEB) beyond 2026 under the proposed fixed tax system.
Highlighting a disparity in tax rates within the sector, he pointed out that remote IT freelancers face a tax rate of only 1 percent, while salaried employees may pay up to 35 percent in income tax.
Syed called on the government to harmonise tax treatment across employment categories in the industry.
He also underscored the need to ease the transfer of foreign currency revenues, warning that inconsistent policies may hinder foreign direct investment in Pakistan’s tech ecosystem.
“Without decisive, pro-business reforms, nearly 600,000 jobs in the IT sector could be jeopardised,” he cautioned.
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