Tech Desk 
Jun 07, 2025
Pakistan's IT industry – including software exports, remote work, and call centres – has quickly become one of the few promising parts of the economy.
However, just as the federal government prepares to release Budget 2025–26, the Pakistan Software Houses Association (P@SHA) has expressed significant issues around uneven policies creating challenges for the IT industry’s growth and confidence of investors.
P@sha calls for policy stability
In a recent statement, P@SHA said IT exports were at $3.2 billion last year, expecting to rise to almost $4 billion by the end of this fiscal year.
With the right growth from the government, the industry has the potential to grow their exports to $15 billion by 2030 as a sector.
Despite this, P@SHA noted serious issues with taxation clarity for remote workers and continual changes in government policy.
P@SHA stated that they have suggested that freelancers with foreign income earning Rs2.5 million and working with less than three clients be taxed like a salaried tax.
Moreover, they mention this would make taxation fair and ensure that foreign firms did not take advantage of local IT companies and hire cheaper input by getting around it by hiring remote talent.
The association also stressed that constant changes in tax laws are shaking investor confidence. It referred to the recent DFDI event where $700 million in investment pledges were made—$600 million of which P@SHA helped secure—showing what’s possible when policies are stable.
Another major concern is the harassment of IT firms by various federal and provincial departments, such as EOBI and tax authorities. Many companies are being forced to shift operations abroad due to these challenges.
P@SHA has urged the government to treat this moment as a turning point, not a routine budget cycle. “This isn’t about special favours,” the statement said, “It’s about securing Pakistan’s place as a digital powerhouse.”
