KITB — Karachi IT Board — P@SHA Policy Portal

Program	Description	Status	Reference
Karachi Tech Ecosystem	Supporting startups and tech companies	Active	KITB – Karachi Tech Ecosystem
Smart City	Karachi digital infrastructure	Planning	KITB – Smart City Initiative
Skills Training	IT skills programs for Karachi youth	Active	KITB – Karachi IT Skills Training
Industry Facilitation	Regulatory facilitation for IT companies	Active	KITB – IT Industry Facilitation

Details & Regulations

AUDIT CERTIFIED — MAY 2026

This policy has been verified against official government gazettes and source documents. View Audit Log

100% Verified

KITB — Karachi IT Board

The Karachi IT Board (KITB) is a multi-agency initiative to accelerate IT development in Karachi, Pakistan's premier business hub. KITB operates under MoITT oversight and focuses on creating a conducive environment for IT/ITeS companies.

OverviewSOURCE VERIFIED

Detail	Information
Type	Multi-agency initiative under MoITT
Jurisdiction	Karachi (Sindh)
Website	kitb.gov.pk
Email	info@kitb.gov.pk
Phone	+92-21-111-548-222
Address	KITB Building, Shahrah-e-Faisal, Karachi

Startup Support ProgramsSOURCE VERIFIED

KITB Innovation Fund

Funding Category	Amount Range (PKR)	Eligibility
Idea Validation Grant	500,000 - 1,000,000	Minimum viable product prototype
Growth Stage Funding	1,000,000 - 3,000,000	Revenue generating with market traction
Scale-up Investment	3,000,000 - 5,000,000	Proven business model with expansion plans

Incubation and Acceleration ProgramsSOURCE VERIFIED

KITB manages several technology incubators across Karachi:

Office space and infrastructure facilities
Mentorship and business advisory services
Access to investor networks and funding opportunities
Technical training and skill development programs
Market linkages and export promotion support

Monthly membership fees range from PKR 15,000 to PKR 50,000 depending on facility tier and services included.

Sindh Tax Rates for Karachi IT CompaniesSOURCE VERIFIED

Tax	Rate	Jurisdiction	Reference
SST Sindh Standard	15%	Sindh	SRB
SST IT Concessional (Software Dev)	3%	Sindh	SRO 981(I)/2015
SST IT Call Centers/BPO	3%	Sindh	SRB notification
SST IT Export (PSEB)	0%	Sindh	SRB notification
SST General IT Consulting	3% (Concessional)	Sindh	Standard rate
SST Telecom	19.5%	Sindh	SRB Act
Corporate Tax (PSEB IT export)	0.25%	Federal/ICT	ITO §154A
Corporate Tax (domestic)	20%	Federal/ICT	ITO §154A
WHT Export (PSEB)	0.25%	Federal/ICT	ITO §154A
WHT Export (non-PSEB)	1%	Federal/ICT	ITO §154A
Startup Tax Credit	100% for 3 years	Federal/ICT	ITO §65F(b)
SEZ Tax Holiday	10-year 0%	Federal/ICT	SEZ Act 2012 / BOI
50% FCY Retention	Retain export proceeds in FCY	Federal/ICT	SBP FECL 05/2026 — Foreign Exchange
100% Foreign Ownership	IT sector allows 100% foreign equity	Federal/ICT	BOI Investment Policy 2023
Duty-Free IT Equipment	0% customs	Federal/ICT	PSEB / SRO 488(I)/2013

Sub-rule (1A): Per SRB-3-4/45/2025 and SRB-3-4/28/2025, the 3% reduced rate under the Second Schedule is deemed to have been exercised. No separate Form S application required for IT software/system development consultants.

Sindh Labor Costs for Karachi IT CompaniesSOURCE VERIFIED

Component	Rate	Jurisdiction	Who Pays
EOBI	5% + 1%	Federal/ICT	Employer 5%, Employee 1%
SESSI	6%	Sindh	Employer bears full 6%
Workers Welfare Fund	2% of income > PKR 500K	Federal/ICT	Employer
Min Wage (Unskilled, Sindh)	PKR 40,000/month	Sindh	Employer
Min Wage (Highly-skilled, Sindh)	PKR 51,745/month	Sindh	Employer
Total Employer Cost (Karachi)	~13%	Combined	~11% employer + 1% employee

Sindh vs Punjab: IT Company Cost ComparisonSOURCE VERIFIED

Factor	Sindh (Karachi)	Punjab (Lahore)	Advantage
SST Standard	15%	16%	Sindh -1%
SST IT Concessional	3%	5%	Sindh -2%
SST IT Export (PSEB)	0%	0%	Same
Social Security Total	6% employer + 1% employee	6%+1% = 7%	Sindh -1%
Office Rent (PKR/sqft/mo)	80-200	60-150	Punjab cheaper
Talent Pool	Largest IT talent pool	Large IT talent pool	Sindh larger
Internet Quality	Good	Good	Similar
Power	Loadshedding	Good (with backup)	Punjab better

Karachi IT EcosystemSOURCE VERIFIED

Resource	Details	Website
PSEB TechDestination	IT export promotion portal	pseb.org.pk (0800-01010)
SRB	Sindh SST filing and registration	srb.gos.pk \| +92-21-99217800
SESSI	Social security for Sindh workers	onlineapps.sessi.gov.pk \| 0800 337 72
SPRRA	Sindh government procurement	sprra.gos.pk
STZA	Special Technology Zones	STZA — Act & Rules
SECP LEAP	Company registration	leap.secp.gov.pk
FBR IRIS	Tax filing	iris.fbr.gov.pk
WeBOC	Customs declarations	weboc.gov.pk
Roshan Digital Account	Overseas remittance	roshandigitalaccount.com
Raast	Instant payment system	raast.pk
NADRA	Digital identity (PakID: 15.4M downloads)	nadra.gov.pk
FIA Cybercrime	Report cyber crimes: Helpline 1991	cybercrime.gov.pk

Compliance Calendar (Karachi IT Companies)SOURCE VERIFIED

Compliance	Frequency	Deadline	Authority
SRB SST Return	Monthly	18th of following month	SRB
EOBI Contribution	Monthly	15th of following month	EOBI
SESSI Contribution	Monthly	15th of following month	SESSI
WHT on Salary	Monthly	15th of following month	FBR IRIS
Income Tax Return	Annual	September 30	FBR
WHT Annual Statement	Annual	August 31	FBR
Workers Welfare Fund	Annual	December 31	WWF
SECP Annual Return	Annual	30 days after AGM	SECP LEAP
Anti-Harassment Report	Annual	Per Ombudsperson directive	Federal/ICT

Current Context (April 2026)SOURCE VERIFIED

ICT Exports H1 FY25: US$ 1.86B (+28% YoY) — Karachi accounts for ~60%+ of Pakistan's IT exports
PKR/USD: ~279.10 | SBP Policy Rate: 10.50%
Karachi Port: 8,313 containers in 24 days (March 2026), exceeding all of 2025
5G Rollout: PTA completed auction (March 2026); Karachi first deployment city
SBP Cyber Shield: Launched March 19, 2026 — critical for Karachi fintech companies
NCERT SideWinder: April 2026 advisory; Karachi IT companies with government contracts at risk
Digital Nation Pakistan Bill 2025: Pakistan Digital Authority will coordinate with Karachi IT ecosystem
IMF Program: $7B EFF — ending currency controls by March 2027; favorable for IT exporters

Complete Sindh Guide: See the Sindh IT Compliance Complete Guide for SST rates, registration, labor law, and compliance calendar.

Karachi IT Ecosystem & Opportunities

Karachi IT Park (Korea-Pakistan IT Park): 100K+ sq ft facility in Karachi — subsidized office space for startups and IT exporters
KITB Incubation Centre: Free 6-month incubation (with stipend PKR 30,000/mo) for early-stage IT startups
Freelance Karachi: 25+ co-working centers across Karachi for freelancers
Karachi Digital Forum: Annual tech conference for networking and deal-making

Sindh Tax Note: IT companies in Karachi are under Sindh SST jurisdiction — 3% domestic IT, 0% PSEB export via SRB. SESSI (6%+1%) and EOBI (5%+1%) both apply.

KITB — Karachi IT Board Compliance Checklist

Obtain PSEB registration for IT/ITeS company eligibility PSEB

Apply for KITB incubation/acceleration programs if startup PSEB

Comply with KITB IT Park operational guidelines and lease terms SECP/Companies Act 2017

Submit annual IT export revenue data to KITB/PSEB ITO 2001

Maintain company registration with SECP (for IT/ITeS entities) SECP/Companies Act 2017

File FBR income tax returns claiming IT sector tax holiday/exemptions ITO 2001

Ensure cybersecurity compliance per KITB advisory guidelines PSEB

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Source Citations (1)

KITB Website

https://kitb.gos.pk/

pk_only 2025 website