KARACHI (Kashmir English): The Pakistan Software Houses Association (P@SHA) has urged the government to restore a 10-year tax exemption under the Final Tax Regime (FTR) for IT and IT-enabled services (ITeS) exports from 2025 to 2035 to restore investor confidence.
The Association hoped that the tax exemption would ensure predictability and continuity in the policies as they said that the IT industry is currently attracting major investments but experiencing operational expansions.
The FTR allows for a reduced withholding tax rate of 0.25% on export proceeds for entities registered with the Pakistan Software Export Board (PSEB) until the specified date.
FTR expires on June 30, 2026
Therefore, the Association held, continuation of the FTR is imperative for sustaining export growth and investment momentum in the country’s IT industry. It is to mention here that the FTR for IT and ITeS is going to expire on June 30, 2026.
P@SHA believes that a 10-year tax exemption will accelerate digital transformation, boost investor confidence, and position Pakistan as a leading IT hub.
The favour would also align with the objectives of the Special Investment Facilitation Council and the prime minister’s vision for exponential IT export growth.
The continuation of the Final Tax Regime will simplify tax structures for IT firms at one hand and on the other, it will allow exporters to retain more revenue for business expansion and technological innovation.
P@SHA Chairman Sajjad Mustafa Syed said that reinstating the FTR for IT and ITeS exports would align Pakistan with regional competitors offering long-term tax incentives to attract foreign direct investment.
He said that country’s IT sector requires stability and consistency to maintain global competitiveness, create employment opportunities and increase exports.
