The Federal Budget 2026-27 brings positive news for Pakistan’s technology sector, particularly the extension of the 0.25% tax regime for IT exporters for another three years. This decision provides much-needed certainty for software companies, exporters, and freelancers, and reinforces the government’s commitment to growing Pakistan’s digital economy.
While the continued focus on IT exports and technology-led growth is encouraging, the budget misses an important opportunity to support a broader Made in Pakistan technology ecosystem, particularly in emerging areas such as Artificial Intelligence.
Around the world, countries are investing heavily in AI infrastructure, AI hardware, high-performance computing, robotics, drones, and advanced electronics. In Pakistan, however, policy support remains largely focused on software, with little attention given to local technology manufacturing, assembly, and value addition.
Pakistan has already demonstrated through the mobile phone sector that targeted policy support can help build local capabilities, create jobs, reduce imports, and attract investment. A similar approach is now needed for computers, AI PCs, servers, data center infrastructure, and other strategic technology products.
The future of AI will not be built on software alone. It requires hardware, computing power, skilled manpower, and innovation working together. Without a clear roadmap, Pakistan risks becoming only a consumer of AI technologies rather than a producer and exporter.
The industry welcomes the positive measures announced for IT exports and appreciates the policy continuity provided through the exporter tax regime. However, future budgets should also focus on incentives for local technology manufacturing, AI infrastructure development, technology transfer, and the promotion of Pakistani technology brands.
“Pakistan has the talent, entrepreneurial capability, and technical expertise to participate in the global AI revolution. The next step is creating policies that enable the country to build, innovate, and export technology products proudly carrying the label “Made in Pakistan.” said Khushnood Aftab Shaikh CEO, Viper Technology.