KARACHI: Muhammad Umair Nizam, Senior Vice Chairman of the Pakistan Software Houses Association (P@SHA), has announced that information technology has become Pakistan’s fastest-growing export industry. He shared that the country is on track to achieve $4 billion in IT exports for FY25 (July 2024 – June 2025), compared to $3.2 billion in FY24, reflecting an anticipated 25% year-on-year (YoY) growth. The announcement was made during a high-profile CXO session organized by P@SHA in Karachi, bringing together the country’s top IT leaders. The session focused on discussing the trends in Pakistan’s IT exports, key challenges, infrastructure development, government relations, international collaborations, and investment opportunities. CEOs and senior executives from leading exporting companies participated in strategic discussions. Notable attendees included Mr. Raheel Iqbal, Vice Chairman of P@SHA; Mr. Haris Naseer, Treasurer of P@SHA; and Central Executive Committee (CEC) members Mr. Munaf Majeed, Mr. Usman Akbar, and Mr. Hassan Bin Rizwan. During the session, Mr. Umair Nizam highlighted the IT industry’s satisfaction with the initiatives led by the Prime Minister’s Office (PMO), Ministry of Information Technology and Telecom (MoITT), Special Investment Facilitation Council (SIFC), and the Pakistan Software Export Board (PSEB). Call for Faster Reforms and Pro-Investment Policies However, he emphasized the need for the Federal Board of Revenue (FBR) and the State Bank of Pakistan (SBP) to expedite policymaking, regulatory reforms, and implementation to create an enabling, business-friendly environment that matches the IT sector’s rapid growth. Mr. Nizam noted that Pakistan's tech industry is rapidly expanding into new verticals and sub-sectors. However, outdated regulations are creating bottlenecks and slowing progress. He stressed the need for flexible and adaptive policies to support the industry's momentum. Furthermore, the IT sector strongly called for a pro-investment and pro-business Federal Budget 2025–26, expected to be announced in the first week of June 2025. P@SHA has already submitted detailed, data-driven budget proposals to the concerned ministries and institutions. Among the key demands, P@SHA is advocating for: A 10-year tax holiday to attract foreign and domestic investment Streamlining of foreign exchange regulations Greater facilitation from commercial banks Elimination of sales tax anomalies Increased funding for skills development programs Acceleration of Special Technology Zones (STZs) and IT park projects Mr. Umair Nizam also pointed out a critical concern regarding the income tax disparity between salaried IT employees and freelancers. Currently, salaried employees pay up to 35% in taxes, while freelancers are taxed between 0.25% and 1%. He called for urgent reforms to correct this imbalance, which discourages the salaried workforce. Adding to the discussion, Mr. Muhammad Zohaib Khan, immediate past Chairman of P@SHA, highlighted that the IT industry remains Pakistan’s only sector with an industry trade surplus of around 75%. He stressed that IT is uniquely positioned to drive exponential growth, create employment opportunities, develop a skilled workforce, reduce the trade deficit, and sustain healthy current and external accounts for Pakistan’s economy.