P@SHA Urges Stable IT Policies and Clear Taxes

The Pakistan IT Industry Association (P@SHA) has urged the government to prioritize policy consistency and tax clarity for the IT and IT-enabled Services (ITeS) sector in the Federal Budget 2025–26. Representing a sector that contributed $3.2 billion in exports in FY24 and is on track to reach nearly $4 billion this fiscal year, P@SHA emphasized the industry’s potential to hit $15 billion in exports by 2030.

Despite this growth, inconsistent taxation and operational hurdles continue to dampen investor confidence. P@SHA noted the need to align payroll tax policies, especially for remote workers, by formally defining them in the Income Tax Ordinance. It stressed the importance of a level playing field between local IT firms and independent freelancers.

The association highlighted that the IT sector’s upward momentum depends on stable fiscal policies and operational ease. It called for digitizing capital repatriation processes and halting harassment by tax and labor authorities. With over 600,000 formal employees and rising input costs, the sector remains resilient but cautioned that this resilience has limits. Without immediate reforms, Pakistan risks losing competitiveness to more agile economies.