Pakistan’s IT exports seen reaching $4 billion in FY25 as industry seeks tax relief

An employee works on a computer at the office of Pakistan Freelancers Association (PAFLA), a platform and support group to help freelancers, in Karachi, Pakistan on August 22, 2024. (REUTERS/File)
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Updated 27 April 2025
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Pakistan’s IT exports seen reaching $4 billion in FY25 as industry seeks tax relief

  • Country’s software association calls IT industry the only sector with 75% trade surplus
  • Government has set an ambitious target of reaching $10 billion in IT exports by 2029

KARACHI: Pakistan’s information technology (IT) sector expects exports to reach $4 billion in the current fiscal year and seeks regulatory reforms and a 10-year tax holiday to sustain growth momentum, said the country’s top software association on Saturday.

The IT sector is one of Pakistan’s priority industries as the country looks to boost export revenues and stabilize its external accounts.

Under the government’s “Uraan Pakistan” initiative, launched last year in December, Islamabad aims to raise IT exports to $10 billion by 2029.

Industry leaders say IT remains one of the few sectors capable of exponential growth despite the broader economic challenges.

“Muhammad Umair Nizam, Senior Vice Chairman of Pakistan Software Houses Association (P@SHA), has apprised that information technology has become the fastest growing export industry of Pakistan – and, the country is set to achieve $4 billion in its IT exports for the FY25,” the software association said in a statement, adding that Pakistan’s IT exports stood at $3.2 billion in the last fiscal year with the prospect for a 25% year-on-year growth.

However, P@SHA warned regulatory bottlenecks and inconsistent tax policies were hampering the sector’s expansion at a time when new tech sub-sectors were emerging.

The association said it had also submitted detailed budget proposals to the government, seeking a facilitative framework that includes streamlined foreign exchange regulations, banking sector support, removal of sales tax anomalies and accelerated development of special technology zones and IT parks.

Pakistan’s IT industry is the only sector with a trade surplus of around 75%, the statement said, underlining its potential to create jobs, develop skilled human capital and reduce the trade deficit on a sustainable basis.

The software association also raised concerns over income tax disparities between salaried employees and freelancers, saying the current structure discourages formal employment and needs urgent correction in the upcoming federal budget.


Pakistan to raise special force to guard Balochistan minerals as Barrick reviews Reko Diq project — official

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Pakistan to raise special force to guard Balochistan minerals as Barrick reviews Reko Diq project — official

  • Barrick decision follows coordinated separatist attacks in several districts across Balochistan last Saturday that killed over 50 civilians and security personnel
  • Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency by Baloch separatist groups who often attack security forces, foreigners

KARACHI: Pakistan has decided to boost intelligence network and raise a special force to guard the mineral-rich Balochistan province and its borders with Iran and Afghanistan, a provincial government official said on Saturday.

The development comes days after Canadian giant Barrick Mining Corporation said it planned to “immediately” begin a comprehensive review of all aspects of the multibillion-dollar Reko Diq copper-gold project in Balochistan.

Barrick decision followed coordinated separatist attacks by the Baloch Liberation Army (BLA) group in several districts across Balochistan last Saturday that killed 36 civilians and 22 security personnel. Authorities said they had killed 216 militants in follow-up operations.

Mineral-rich Balochistan, which borders Iran and Afghanistan, is the site of a decades-long insurgency waged by Baloch separatist groups who often attack security forces, foreigners and non-local Pakistanis and kidnap government officials.

“In light of the terrorists events, the provincial government in tandem with security forces is redesigning the entire security architecture,” Shahid Rind, an aide to Chief Minister Sarfraz Bugti for media and political affairs, told Arab News.

“This includes raising of dedicated Frontier Corps for the mineral-bearing area, securing both borders i.e. Iran and Afghanistan.”

Arab News reached out to Pakistan’s information minister, Attaullah Tarar, but he did not respond to questions seeking comment on the matter.

The Balochistan government will also beef up intelligence network and work closely with mining companies in the region.

“The Balochistan government is extremely serious about foreign investment in the province and considers Reko Diq as the flag-bearer of foreign investment,” Rind said.

“The provincial government will do whatever is necessary to maintain that.”

The recent attacks have apparently alarmed international investors, especially Barrick, which is developing one of the world’s largest copper and gold mines in Balochistan.

“As we stated in our public documents, Barrick is undertaking a review of all aspects of the Reko Diq project, including with respect to the project’s security arrangements, development timetable and capital budget,” a Barrick spokesperson said in response to an Arab News email.

In a Feb. 5 statement issued with its fourth-quarter financial results, Barrick said the Reko Diq project “continued to advance site works in Q4, although in light of a recent increase in security incidents, management is currently reviewing all aspects of the project.”

“The review will begin immediately,” the Barrick spokesperson said. “An update will be provided when the review has been completed.”

Barrick owns 50 percent share in Reko Diq, along with three Pakistani federal state-owned enterprises that own 25 percent, while the Balochistan government has the remaining 25 percent share in the project.

The project is expected to begin production in 2028 and is central to Pakistan’s hopes of boosting mineral exports and attracting foreign investment into its underdeveloped mining sector. Despite heightened threats in Balochistan, development linked to the project continues in other parts of the country.

Barrick is expected to start investing in Pakistan’s port infrastructure soon as it prepares for exports.

Pakistan International Bulk Terminal Ltd. (PIBT), the country’s first dirty bulk terminal located at Port Qasim in Karachi, will host dedicated facilities to ship Reko Diq’s output.

PIBT CEO Sharique Azim Siddiqui told Arab News this week that Barrick would invest $150 million to build a shed and upgrade other dedicated facilities to handle shipments of copper-gold concentrate once Reko Diq production begins in 2028.

Barrick’s Pakistani subsidiary, Reko Diq Mining Company, last week signed an export agreement with PIBT under which the miner will export 800,000 tons of copper and gold concentrate through the terminal in the first phase, doubling the volume in the second phase, according to Siddiqui.

Revived in 2022 after years of legal disputes, the Reko Diq project is billed by the government as a transformative investment for Balochistan, Pakistan’s largest but least developed province.

But persistent militant activity and rising attacks targeting security forces, state institutions and infrastructure have raised concerns among investors.

The latest separatist attacks, one of the deadliest flare-ups in Balochistan in recent years, have prompted large-scale security operations across the province as authorities continue their hunt for militant facilitators.

Siddiqui said the recent surge in militancy in Balochistan remains a concern for them.

“Security challenges have always been there in Pakistan. The investors do realize that, and we take it in our stride, and we hope for the best,” Siddiqui said.

“If there is no security for the cargo movement, then that’s going to hurt that (Reko Diq) project and hurt everyone.”