Ahmed Khan Malik

Sindh’s information technology (IT) sector has urged the government to introduce meaningful incentives in the upcoming budget in order to strengthen and sustain the industry’s growth. Industry leaders and experts argue that with the right policy support, the IT sector can play a transformative role in the national economy through exports, job creation, and technological innovation.

Talking to WealthPK, they said the IT sector could generate significant foreign earnings for the country through IT exports, which could even surpass the conventional export of goods. They said the country couldn’t enhance the export of its conventional goods substantially for the last few years, even though the traditional export sectors were given tax exemption, rebates, and other incentives. Whereas, the IT sector performed exceptionally well despite limited incentives.

IT sector entrepreneur Muhammad Zohaib Khan emphasized the need for long-term policies to address the sector’s operational, fiscal, and structural challenges. “The IT industry is poised to cross $3.5 billion in exports this year, but we need a policy framework that ensures stability, promotes ease of doing business, and facilitates access to the global markets,” Khan said.

He proposed a combination of tax relief, easier banking and payment processes for IT exports, investment in skills development, and full activation of Special Technology Zones Authority (STZA) incentives to enhance competitiveness. Industry representatives expressed concerns over the recent increase in taxation on IT professionals and businesses. Tahir Ahmed, an IT sector expert, warned that over-taxation could trigger a brain drain, as skilled professionals seek better opportunities abroad.

“Instead of encouraging our tech talent to stay and contribute to the local economy, we are pushing them away through punitive taxation,” he said. Beyond fiscal issues, Sindh’s IT sector faces practical challenges, such as inconsistent internet connectivity, a lack of global payment gateways like PayPal, and high shipping costs for hardware and e-commerce. He pointed out that these issues hinder the competitiveness of local companies in the global markets.

Muhammad Yasir, an IT and telecom analyst, stressed the need for a reliable digital infrastructure and promotion of tech startups through international platforms and embassy-led initiatives. He said the Sindh government had previously attempted to boost the sector by reducing taxes. While this was welcomed, industry voices say it is not enough without a broader, coordinated national effort, he said. Yasir said the IT industry had consistently called for a 10- to 12-year roadmap that includes tax holidays, export incentives, and consistent regulatory policies.

Such measures, they argue, would attract foreign investment and boost IT exports substantially. He said that as the federal and provincial governments finalize budget proposals, Sindh’s IT sector leaders are united in their demand for strategic, long-term support. With the right incentives and infrastructure, they believe the province — and Pakistan as a whole — can emerge as a competitive force in the global technology arena.

Credit: INP-WealthPk