KARACHI: Pakistan’s software industry has urged the government to retain the existing 0.25 percent final tax regime for IT exporters and genuine freelancers for the next 10 years, saying policy continuity is critical to sustaining export growth and attracting foreign business ahead of the federal budget.
The call comes as President Asif Ali Zardari has summoned parliament for the federal budget session on June 5, with the government preparing to unveil its fiscal plan for 2026-27 amid efforts to boost exports, attract investment and expand the tax base.
Information technology has emerged as one of Pakistan’s priority sectors, with successive governments promoting IT exports and digital services as a key source of foreign exchange earnings and economic growth.
In its budget recommendations, the Pakistan Software Houses Association (P@SHA) said maintaining the current tax regime would provide certainty to businesses and freelancers operating in the country’s growing digital economy.
“To provide stability and confidence to the industry, P@SHA has strongly recommended the continuation of the existing 0.25 percent final tax regime for IT exporters and genuine freelancers for a period of 10 years,” the industry body said in a statement.
“This policy continuity is deemed essential to attract global business, secure foreign exchange inflows, and empower the registered corporate entities that serve as the primary engines of Pakistan’s technological and economic advancement.”
P@SHA said it supported a favorable environment for genuine freelancers but stressed the need to distinguish between project-based independent workers and full-time remote employees earning fixed salaries from overseas companies.
Tufail Ahmed Khan, honorary president of the Global Freelancers Union, said authentic freelancers should continue to benefit from the simplified 0.25 percent final tax regime, while remote professionals working as salaried employees for foreign firms should be taxed under standard income tax slabs.
P@SHA also called for simplified banking procedures, smoother inward remittance mechanisms and easier tax filing processes, while urging greater investment in artificial intelligence, cloud computing and cybersecurity to strengthen Pakistan’s position as a global technology outsourcing destination.
