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Federal Budget, Finance Acts & Economic Policy
| Indicator | Value | As Of | Notes | Reference |
|---|---|---|---|---|
| Federal Budget 2025-26 | Rs 18.9 trillion | FY2025-26 | Total outlay | |
| FBR Tax Target | Rs 12.9 trillion | FY2025-26 | Original target | |
| IMF Bailout | $7 billion | 2024-29 | Extended Fund Facility | |
| IMF Tranche | $1 billion | 2026 | Staff level agreement | |
| IT Exports H1 FY25 | $1.86 billion | H1 FY25 | +28% YoY | |
| SBP Policy Rate | 10.50% | Mar 2026 | Unchanged | |
| USD/PKR | ~279.10 | Apr 2026 | Interbank rate | |
| Inflation (CPI) | 7.3% | Mar 2026 | 17-month high |
| Measure | Impact on IT | Legal Basis | Reference |
|---|---|---|---|
| 0.25% (Federal/ICT) WHT on IT Exports (PSEB) | PSEB-registered IT exporters pay only 0.25% WHT vs 1% standard | ITO 2001 §154A | ITO 2001 |
| 1% Digital Tax (Section 6A) | 1% tax on digital marketplace/CoD sales — IT exporters still under §154A | Finance Act 2025 §6A | Finance Act 2025 |
| Startup Tax Credit (§65F) | 100% tax credit for 3 years for qualifying startups (PSEB mandatory, <PKR 100M turnover) | ITO 2001 §65F | ITO 2001 |
| 20% (Federal/ICT) Corporate Tax Rate | Standard corporate rate (reduced from 29% over past years) | ITO 2001 | ITO 2001 |
| Duty-Free IT Equipment Import | 0-5% customs duty on IT hardware for PSEB-registered companies | SRO notifications | PSEB |
| 50% FCY Retention | IT exporters can retain 50% of export proceeds in foreign currency | BOI Investment Policy 2023 | BOI |
| SEZ Tax Holiday | 10-year income tax holiday in Special Economic Zones | SEZ Act 2012 | BOI |
| Tax Type | Rate | Conditions | Reference |
|---|---|---|---|
| Corporate Tax (IT Exporters, PSEB) | 0.25% (Federal/ICT) | Must have PSEB registration + 80% export revenue | ITO §154A |
| Corporate Tax (Domestic IT) | 20% (Federal/ICT) | Standard corporate rate | ITO §154A |
| WHT on Export Remittance (PSEB) | 0.25% (Federal/ICT) | PSEB registration required | ITO §154A |
| WHT on Export Remittance (non-PSEB) | 1% | No PSEB registration | ITO §154A |
| WHT on Domestic Services | 3-8% | Standard withholding on service bills | ITO §153 |
| Startup Tax Credit | 100% for 3 years | PSEB mandatory, <PKR 100M, new business | ITO §65F |
| Sindh SST (IT, PSEB export) | 0% | 80%+ export, PSEB registered | SRO 981(I)/2015 |
| Sindh SST (IT, domestic) | 3% (Sindh) | Software development, CPC 83100 | SRB |
| Reference | Description | Source |
|---|---|---|
| Finance Act 2025 | Latest tax law changes including §6A digital tax | FBR |
| ITO 2001 (Amended) | Income Tax Ordinance — §154A, §65F, §6A | FBR |
| SEZ Act 2012 | 10-year tax holiday in Special Economic Zones | BOI |
| BOI Investment Policy 2023 | 100% foreign ownership, 35% FCY retention, duty-free IT equipment | BOI |
| Tax | Rate | Jurisdiction | Conditions | Reference |
|---|---|---|---|---|
| Corporate Tax (PSEB IT export) | 0.25% | Federal/ICT | PSEB + 80% export revenue | ITO §154A |
| Corporate Tax (domestic IT) | 20% | Federal/ICT | Standard corporate rate | ITO §154 |
| WHT Export Remittance (PSEB) | 0.25% | Federal/ICT | PSEB-registered | ITO §154A |
| WHT Export Remittance (non-PSEB) | 1% | Federal/ICT | No PSEB registration | ITO §154A |
| WHT Domestic Services | 3-8% | Federal/ICT | Standard service withholding | ITO §153 |
| Startup Tax Credit | 100% for 3 years | Federal/ICT | PSEB mandatory, <PKR 100M | ITO §65F(b) |
| SEZ Tax Holiday | 10-year income tax 0% | Federal/ICT | SEZ-registered companies | SEZ Act 2012 / BOI |
| SST Sindh — IT concessional | 3% | Sindh | Software dev, CPC 83100 | SRB Notification July 2025 (CPC 83100, sub-rule 1A) |
| SST Sindh — IT export (PSEB) | 0% | Sindh | PSEB + 80% export | SRO 981(I)/2015 (exemption for PSEB-registered IT exporters) |
| SST Sindh — Standard | 15% | Sindh | Default rate | Sindh Sales Tax on Services Act 2011 §4 |
| SST Punjab — IT-Enabled Services | 0% (Zero-Rated) | Punjab | Hosting, maintenance, data processing | Punjab Sales Tax on Services Act 2012, PRA Notification (0% (Zero-Rated) for domestic IT) |
| SST Punjab — Software Dev | 0% (zero-rated) | Punjab | Pure software development | Punjab Sales Tax on Services Act 2012, Notification per PRA directive |
| SST Punjab — IT export (PSEB) | 0% | Punjab | PSEB + 80% export | SRO 981(I)/2015 (extended to Punjab) |
| SST Punjab — Standard | 16% | Punjab | Default rate | Punjab Sales Tax on Services Act 2012 §4 |
| SST KP — IT concessional | 2-5% | KP | PSEB-registered IT | KP Finance Act (annual), Notification per KPRA |
| SST KP — IT export (PSEB) | 0% | KP | PSEB + 80% export | SRO 981(I)/2015 (extended to KP) |
| SST KP — Standard | 15% | KP | Default rate | KP Finance Act (annual) |
| SST Balochistan — IT export | 0% | Balochistan | PSEB + export | SRO 981(I)/2015 (extended to Balochistan), per BRA notification |
| SST Balochistan — Standard | 15% | Balochistan | Default rate | Balochistan Sales Tax on Services Act 2015 |
| SST Telecom (all provinces) | 19.5% | All provinces | Mobile, internet, fixed-line | Provincial Acts |
| EOBI | 5% employer + 1% employee | Federal/ICT | 5+ employees, PKR 37,000/mo ceiling (EOBI Act & Rules) | EOBI Act 1976 |
| SESSI (Sindh) | 6% employer + 1% employee | Sindh | 5+ employees | SESSI Act |
| PESSI (Punjab) | 6% employer + 1% employee | Punjab | 5+ employees | PESSI Ord. 1965 |
| Workers Welfare Fund | 2% of income > PKR 500K | Federal/ICT | 5+ employees, annual | WWF Ord. 1969 |
| 50% FCY Retention | Retain export proceeds in FCY | Federal/ICT | All IT exporters | SBP FECL 05/2026 — Foreign Exchange |
| 100% Foreign Ownership | IT sector allows 100% foreign equity | Federal/ICT | All IT companies | BOI Investment Policy 2023 |
| Duty-Free IT Equipment | 0% customs duty | Federal/ICT | PSEB-registered | PSEB / SRO 488(I)/2013 |
| Body | Role | Website |
|---|---|---|
| FBR / IRIS | Income tax filing, WHT, ATL status | iris.fbr.gov.pk |
| SECP / LEAP | Company registration, annual returns | leap.secp.gov.pk |
| PSEB | IT registration, 0.25% WHT, duty exemptions | pseb.org.pk |
| SBP | FCY retention, EFS, Cyber Shield (Mar 2026) | sbp.org.pk |
| PTA | Telecom licensing, 5G, DIRBS | pta.gov.pk |
| SECP | Corporate governance, company law | secp.gov.pk |
| NADRA | Digital identity (PakID: 15.4M downloads) | nadra.gov.pk |
| WeBOC | Electronic customs declarations | weboc.gov.pk |
| Roshan Digital Account | Overseas Pakistani investment | roshandigitalaccount.com |
| Raast | Instant payment system | raast.pk |
| STZA | Special Technology Zones | STZA — Act & Rules |
| BOI | Investment policy, 100% foreign ownership | invest.gov.pk |
| PPRA | Government procurement (EPADS V2.0) | PPRA — Rules & Regulations |
| FIA Cybercrime | PECA enforcement, Helpline 1991 | cybercrime.gov.pk |
| EOBI | Federal pension: 5%+1% | eobi.gov.pk |
| SRB | 0% | srb.gos.pk |
| PRA | Punjab SST: 0% (Zero-Rated) IT / 0% PSEB export | PRA — PSTS Act 2012 |
| KPRA | KP SST: 2-5% IT / 0% PSEB export | KPRA — Acts & Notifications |
| BRA | Balochistan SST: 0% PSEB IT export | bra.gob.pk |