(October 9, 2025) Mian Zahid Hussain, President Pakistan Businessmen and Intellectuals Forum & All Karachi Industrial Alliance, Chairman National Business Group Pakistan, Chairman Policy Advisory Board FPCCI, and Former Provincial Minister Information Technology, Today emphasized urgent executive action to reform the IT sector, noting that unresolved institutional issues limit over $1.2 billion in yearly export revenue. Mr. Hussain underscored the sector’s vast potential, record exports, and key structural challenges.
Pakistan’s IT and ITeS sector doubled to $3.8 billion in FY 2024–25, making up about 1% of GDP. Mr. Hussain noted IT exports actually exceed $5 billion, with a $1.2 billion gap due to policy failures. Our top-ranked freelance community and many IT firms avoid formal banks due to complex forex repatriation and tax compliance processes.
Mian Zahid Hussain urged three key actions to boost IT exports by at least 25% and maintain competitiveness. He emphasized replacing the temporary tax exemption expiring in June 2025 with a permanent 100% income tax credit, removing the harmful minimum tax on turnover. He cited Ireland and Singapore as examples, warning that temporary incentives deter long-term FDI and IP growth.
The State Bank of Pakistan should create a ‘Digital Exporters FX Simplification Window’ requiring banks to accept digital transaction proofs like Payoneer statements for faster Proceeds Realization Certificates issuance. This could quickly add $1.2 billion to recorded exports.
The nation relies 99% on imported IT hardware, risking foreign reserves and security. Mr. Hussain urged SIFC to prioritize IT hardware manufacturing, offering permanent incentives like subsidized land and tax breaks to boost FDI and local value addition.
Mian Zahid Hussain highlighted a major skill gap, with 90% of 75,000 IT graduates yearly unprepared for export jobs. He urged a national upskilling program focused on AI and Machine Learning, noting AI could add $20 billion to the economy by 2030 and curricula need updating every 12-24 months.
Advertisements
