Tech Desk 
Apr 20, 2025
In line with Pakistan witnessing remarkable growth in IT sector's growth, leaders concerned seem to be committee to keeping intact long-term policies encouraging the growth pace.
It emerged on Saturday that the Pakistan Software Houses Association (P@SHA) has proposed a 10-year extension of the Final Tax Regime (FTR), an ongoing concessional withholding tax regime on IT and software export earnings, to enhance investor confidence and drive foreign direct investment (FDI).
According to Business Recorder, the current FTR, offering 0.25% relief on withholding tax for registered IT exporters, is set to expire on 30 June 2026.
In a recent budgetary proposal, P@SHA Chairman Sajjad Mustafa Syed urged to continue the grant of privilege to IT industry's withholding tax
“The continuation of FTR is imperative for sustaining the momentum of export growth and investments in the IT industry,” he highlighted.
Syed emphasised that giving the regime a 10-year extension would attract global investors.
In line with the goals of the Special Investment Facilitation Council (SIFC) and the Prime Minister’s vision of exponential IT export growth, he stated that "a 10-year tax exemption would accelerate digital transformation and position Pakistan as a regional IT hub.”
Doing so, he explained, would also make it easier for IT firms to comply with regulations, reinvest, and subsequently equip the county to compete with regional competitors.
