Pakistan’s technology sector has made impressive strides in recent years, with growing numbers of software companies, freelance professionals, and IT service providers offering solutions to clients across the world. However, despite this promising progress, tech leaders across the country are raising their voices for one critical change long-term, clear, and stable tax policies.
Frequent Tax Changes Are Holding Back Growth
One of the biggest challenges tech companies face today is constant changes in tax policies. Over the past few years, there have been multiple shifts in tax exemptions, refund systems, and compliance procedures. These unpredictable changes make it hard for businesses to plan, especially for small startups that are trying to grow and attract foreign clients.
For example, a software export company might be granted a tax exemption one year, only to lose it the next without any clear explanation. This makes financial planning nearly impossible and creates a sense of instability. In the business world, confidence is everything.
If companies can’t predict their costs or tax responsibilities, they may slow down hiring, hold off on investment, or even think about moving operations abroad.
Tech Leaders Are Asking for Long-Term Policy
Leaders in the IT sector have come forward with a clear request: they want the government to announce a long-term tax policy, preferably for five to ten years, and stick to it. This would not only provide clarity for business owners but also send a positive message to investors both inside and outside the country.
Such a move would encourage local companies to expand operations, hire more skilled workers, and invest in training and development. In turn, it could significantly boost IT and software exports, which are already among Pakistan’s most promising foreign exchange earners.
Competing Countries Offer Better Stability
Pakistan is not the only country in South Asia trying to grow its tech exports. Countries like India, Bangladesh, and Vietnam are already offering stable tax policies and strong government support to their tech industries. As a result, they are attracting more international clients and foreign investment.
If Pakistan wants to stay competitive, it must match or exceed the support these countries provide. That means offering tax clarity, easing the refund process, and creating a business-friendly environment where tech companies can thrive.
Refund Delays and Over-Auditing Create Further Stress
Besides policy changes, businesses are also troubled by refund delays and repeated audits. Many companies report that it takes months or even years to receive tax refunds from the government. In some cases, these funds are essential for day-to-day operations or reinvestment in the business.
Additionally, small tech companies often feel overwhelmed by frequent audits and excessive paperwork. Instead of focusing on product development or improving services, they are caught up in red tape. This is not only time-consuming but also discouraging for young entrepreneurs trying to enter the industry.
