The Pakistan IT Industry Association (P@SHA) has formally urged the Federal Board of Revenue (FBR) and the Ministry of Finance to extend the 0.25 percent Final Tax Regime (FTR) on IT export receipts under Section 154A for a period of ten years, extending through Tax Year 2036.
Chairman P@SHA Sajjad Syed stressed that the current FTR is scheduled to expire in June 2026, creating structural uncertainty that severely undermines investment planning, foreign exchange generation, and international client commitments.
The IT and IT-enabled services (ITeS) sector has demonstrated highly resilient growth under the current predictable tax framework – with IT services exports reaching a record $3.8 billion in FY2024-25, marking an 18 percent increase over the previous year.
Despite these macroeconomic gains, Pakistan’s share of global IT services trade remains critically vulnerable, particularly when juxtaposed against regional competitors like India, whose technology sector generated $224 billion in exports with a workforce of over 5.4 million in FY2024-25.
P@SHA emphasizes that IT companies making strategic decisions regarding delivery centers, mass hiring, and bidding on multi-year global outsourcing contracts require an extended policy visibility window.
Regional peers have successfully secured their global market shares through enduring fiscal predictability; for instance, India’s Special Economic Zone (SEZ) benefits span 10 to 15 years, Vietnam’s IT incentives extend up to 15 years, and Bangladesh offers a 100 percent corporate income tax exemption for its IT sector.
P@SHA asserts that a 10-year extension aligns Pakistan with these regional incentive horizons and enables the large-scale infrastructure investments, such as data centers, that require 7 to 10-year payback periods. It also supports Pakistan’s candidacy for the establishment of Global Capability Centers (GCCs) by multinational corporations that strictly require decade-long policy stability.
Securing a 10-year extension of the 0.25 percent FTR is not merely an industry incentive but a critical macroeconomic imperative for Pakistan’s digital economy. Reaching the Federal Government’s stated target of $15 billion in IT exports by 2030 necessitates sustained annual growth rates of 25 to 30 percent – a trajectory that is mathematically impossible without absolute policy certainty.
P@SHA warns that the alternative to an FTR extension is not higher taxation revenues, but rather a direct reduction in export activity and critical foreign exchange inflows.
By acting decisively before the June 2026 expiration, the Federal Government can provide the fiscal predictability required to transition Pakistan from an emerging tech destination into a dominant, long-term player in the global digital economy.
In short. They want remote workers to pay high taxes but at the same time they want to pay less taxes.
All call centers Make millions but treat workers like slaves. They should be paying corp tax rates
Pay your taxes. You earn billions.
They should be punished for slavery
Workers pay 20 to 40 percent taxes on their income
While these billion earning call centers are crying about paying higher then 0.25 percent .
What a joke is this