ISLAMABAD – The federal government has decided to continue tax incentives for the Information Technology (IT) sector, IT-enabled services, freelancers, and digital exporters.
Under the Budget 2026-27, the government has classified IT, IT-related services, freelancers, software houses, and digital exporters as key assets of the economy.
According to budget documents, the 0.25 percent Final Tax Regime (FTR) on IT export earnings was previously set to expire on June 30, 2026. However, the Prime Minister has proposed extending this concessional regime for an additional three years until June 30, 2029.
The move is aimed at supporting the growth of Pakistan’s digital economy and boosting foreign exchange earnings through increased IT exports.
