Advocacy wins
Outcomes secured through P@SHA's engagement with federal ministries, regulators, and parliament, grouped by the fronts where the industry's operating environment is decided.
The formal asks: recommended and delivered
P@SHA's Federal Budget 2026-27 Policy Recommendations (April 2026) put six formal interventions before the FBR, Ministry of Finance, and MoITT. Where each one stands after the Finance Bill:
Recommended: extend the FTR under Section 154A for a minimum of 5 years, preferably 10. Delivered: extended through Tax Year 2029, three years of policy certainty. The push to convert this into a permanent statutory benefit continues into the 2029 review cycle.
Recommended: a dedicated PKR 5 billion federal allocation for national digital skills programs. Delivered: Rs. 5.29B for digital skills targeting 120,000 youth, within over Rs. 10B committed across skills, education, and AI. P@SHA is now pursuing the joint industry governance and outcomes-based funding design it proposed.
Recommended: a Category A / Category B distinction under Section 154A with graduated rates, closing a 22 to 44 percent take-home pay arbitrage draining senior talent from organized IT firms. The Bill extended the rate uniformly. This remains P@SHA's top ask for the next cycle.
Recommended: pass-through treatment for licensed VC/PE funds, capital gains exemption for 3+ year holds in PSEB-registered companies, and repatriation guarantees. Not included in the Bill; the most consequential omission given VC investment fell from $366M in 2021 to $22.5M in 2024.
Recommended: minimum allocation thresholds for locally developed software and hardware in federal and provincial procurement, with phased implementation. Not taken up in this Bill; advocacy continues with MoITT and PSEB.
Recommended: a unified 5% rate, single registration, and single-portal filing through the CCI or National Tax Council. A federal-provincial matter beyond the Finance Bill alone; P@SHA continues to pursue the coordination mechanism.
Beyond the formal asks: further budget wins
Delivered in the Finance Bill following P@SHA's wider budget engagement: Standing Committee testimony, consolidated industry feedback through FPCCI and the Ministry of Finance, and the post-budget anomaly process.
Direct cost relief on every payment for cloud, tools, and SaaS made through Pakistani bank-issued cards.
Ends the refund-cycle working capital squeeze for qualifying early-stage companies.
Surcharge abolished and thresholds restructured, improving talent retention at zero cost to employers.
A company earning Rs. 200M that previously paid Rs. 5M in super tax now pays nothing, freeing capital for reinvestment.
Eliminates a friction point affecting founders' and professionals' decisions about where to domicile assets.
Covers hardware, software, and installation costs, incentivizing the digital compliance infrastructure the sector needs.
WHT on IT services held at the preferential 4% rate, and the Section 65F technology tax credit continued into the new fiscal year. Defending existing benefits through each budget cycle is as much a part of advocacy as winning new ones.
Connectivity & digital access
Secured through engagement with PTA, including Senate hearings, industry-wide surveys, and direct facilitation for affected members.
Restored reliable connectivity for hundreds of exporting firms during a period of network disruption.
Whitelisting of 20 VPNs alongside case-by-case resolution and facilitation for member companies, a member webinar on the whitelisting process, and the Chairman's testimony before the Senate.
P@SHA put the industry's position on record on connectivity disruptions and their export impact.
Banking & payments
Secured through P@SHA's standing engagement with the State Bank of Pakistan on facilitation for IT and ITES exporters.
Expanded room for Pakistani IT companies to invest in and operate international subsidiaries.
SBP's 2026 instructions raised the Form R threshold above USD 25,000 and removed the per-transaction requirement, following sustained industry feedback on documentation burden. Bank-level implementation is being tracked in Live Issues.
Industry-proposed vendors added, easing routine payments for international services.
A consolidated industry requirement set for digital and online banking facilitation, now with the regulator.
Trade, skills & investment climate
Secured through P@SHA's tariff proposals to the Ministry of Commerce.
P@SHA's Export Development Fund proposal, developed and delivered through direct engagement with the Ministry.
Including Rs. 5.29B for digital skills targeting 120,000 youth and the AI Seekho 2026 programme, a meaningful increase in public investment in the sector's talent pipeline.
Member facilitation
Case-by-case resolution of regulatory matters for individual member companies, from EOBI to PTA to banking, is a standing part of the policy team's work. Recent EOBI resolutions, in members' own words:
"On behalf of PaysysLabs Private Limited, we would like to appreciate P@SHA for its timely and valuable support in facilitating our recent EOBI-related issue. Their guidance, coordination, and prompt response helped us move the matter forward efficiently."
"We sincerely appreciate P@SHA's prompt response and proactive support in our EOBI matter. Their timely guidance and coordination reflect their strong commitment to serving member companies."