The Pakistan Software Houses Association (P@SHA) has called on the federal government to introduce a comprehensive, tax-friendly package for the IT industry in the upcoming federal budget on June 10.
Speaking to the media, P@SHA Chairman Sajjad Mustafa Syed highlighted that $600 million of the $700 million total investment in Pakistan’s IT sector comes from P@SHA member companies. He stressed that sustained growth requires stability, policy incentives, and protection for the sector.
Chairman Syed urged the government to present a tax-free budget for the IT sector and to avoid introducing any new taxes. He proposed the implementation of a 10-year fixed tax regime (FTR) from 2025 to 2035, which should be formally announced in the Budget 2025–26. He also requested that companies registered with the Pakistan Software Export Board (PSEB) continue to be subject to only 0.25% withholding tax beyond 2026 under the FTR.
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He further stressed the importance of facilitating foreign currency transactions and warned that without consistent, long-term policy frameworks, foreign direct investment (FDI) in IT will suffer. He cautioned that failure to implement business-friendly policies could put the jobs of 600,000 IT professionals at risk.
