IT Industry Leaders Urge Government to Cut Taxes and Support Growth
Pakistan’s IT industry leaders have urged the government to cut taxes. They believe this step will help boost IT exports in the coming years.
Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), highlighted key issues. He demanded a major cut in the income tax on employees’ salaries. Currently, it stands at 35%. Nizam suggested it should be reduced to a flat 5%.
He explained that this move would help IT companies stay competitive. At present, remote IT workers, working as freelancers, pay just 1% in taxes. Due to this, many skilled workers prefer freelancing over full-time jobs. Lowering the tax would encourage them to join IT firms.
IT Industry Leaders Urge Government to Cut Taxes and Support Growth
Nizam also put forward several other demands. He called for a 10-year tax holiday for IT companies. He stressed the need for streamlining foreign exchange regulations. He also asked for better support from commercial banks and the removal of sales tax issues. Furthermore, he urged the government to allocate funds for skill development. He also demanded faster development of Special Technology Zones (STZs) and IT parks across the country.
Nizam raised another concern regarding debit card taxes. Currently, there is a 10% tax on transactions from foreign exchange accounts. He urged the government to abolish this tax. According to him, this eats up a big share of IT companies’ earnings and hurts their profits.
He highlighted the sector’s growing potential. Pakistan’s IT exports are expected to reach a record $4 billion in the fiscal year 2025. Pakistan is also expanding into many new fields of technology. However, Nizam said outdated regulations are slowing down this growth.
He explained that P@SHA works closely with the government. They translate the concerns of IT companies into policies and actions. Whether it is about taxation, ease of business, or digital infrastructure, P@SHA is there to advocate for the industry.
Mehwish Salman, CEO of Datavault Pakistan, also shared her views. She said the government must invest in emerging technologies. These include artificial intelligence, cybersecurity, the internet of things, and data engineering.
She recommended that the government continue skill development programs. Salman suggested boot camps in different cities to train professionals to meet global standards.
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She also emphasised the need to support female professionals. She asked for subsidies for women seeking certifications and scholarships for female students. Moreover, she believes this will increase women’s participation in the IT sector.
Salman added that AI tools and coding should be introduced at the secondary school level. This would create a culture of innovation among the younger generation.
Former P@SHA Chairman Muhammad Zohaib Khan also highlighted the importance of the IT sector. He said IT is the only industry in Pakistan with a 75% trade surplus. It is also the only sector that can grow rapidly, create jobs, and help stabilise the economy.
The IT industry leaders agree. Immediate reforms and smart investments can turn Pakistan into a major global player in technology exports.
