Budget 2026–27: Pakistan Must Bet Big on IT to Secure Economic Future “Shahzad Arif”

As Pakistan approaches the announcement of the Federal Budget 2026–27, Shahzad Arif, CEO of AKS iQ, says the country stands at a pivotal moment in its economic journey. Shahzad Arif says the information technology sector has emerged as one of Pakistan’s strongest contributors to exports, foreign exchange earnings, employment generation, and global competitiveness. He says the upcoming budget presents an important opportunity for policymakers to send a clear message that Pakistan is committed to building a globally competitive digital economy. The technology sector has consistently demonstrated resilience and growth despite economic challenges, but unlocking its full potential requires targeted reforms and long-term policy certainty.

Shahzad Arif serves as the Chief Executive Officer of AKS iQ, a technology company specializing in software development, digital transformation, enterprise solutions, artificial intelligence, and innovation-driven services. He says Pakistani software engineers, developers, freelancers, and technology entrepreneurs are already competing successfully on the global stage, but stronger policy support can help accelerate growth even further.

Presenting his recommendations for the Federal Budget 2026–27, Shahzad Arif says the following measures can significantly strengthen Pakistan’s digital economy and technology exports:

Shahzad says the government should establish a stable, transparent, and predictable tax regime for IT exporters and freelancers, backed by a long-term policy commitment of at least ten years. He says frequent changes in taxation policies create uncertainty for businesses and investors. Long-term predictability will encourage investment, facilitate business planning, and strengthen investor confidence in Pakistan’s technology sector.

Shahzad Arif says the government should facilitate access to international payment gateways such as PayPal or introduce a comparable government-supported solution. He says Pakistani freelancers and IT companies continue to face challenges in receiving payments from international clients. Efficient and seamless payment mechanisms are essential for enhancing Pakistan’s competitiveness in the global digital economy.

Shahzad says IT exporters should be allowed to retain a larger portion of their export earnings in foreign currency accounts. He says technology businesses frequently require payments for cloud services, software subscriptions, digital tools, international marketing campaigns, and overseas vendors. He says greater flexibility in utilizing foreign exchange earnings would support business growth and international expansion.

Shahzad Arif says the government should introduce targeted tax incentives, grants, and support programs for investments in Artificial Intelligence (AI), Research and Development (R&D), cybersecurity, emerging technologies, and workforce upskilling initiatives. The future global economy will be driven by innovation. He says Pakistan must position itself as a producer of advanced technology solutions rather than merely a consumer.

Shahzad Arif says export-oriented technology companies would greatly benefit from simplified tax filing procedures, regulatory compliance requirements, and refund mechanisms. He says excessive administrative burdens consume valuable resources that could otherwise be invested in innovation, client acquisition, and business expansion. A streamlined compliance framework would significantly improve the ease of doing business.

Shahzad Arif says uninterrupted access to reliable electricity and high-speed internet infrastructure is essential for the growth of Pakistan’s technology sector. He says these are no longer optional utilities but fundamental requirements for technology businesses. Even minor disruptions can affect productivity, project delivery timelines, and client confidence. He says investments in digital infrastructure should be treated as investments in export growth.

Shahzad Arif says qualified Pakistani software houses and technology firms should be prioritized in government digital transformation and e-governance projects while maintaining transparent and merit-based procurement processes. Local companies possess the expertise needed to deliver innovative solutions and can play a major role in modernizing public services. He says this approach will simultaneously strengthen the domestic technology ecosystem.

Shahzad says the government should introduce incentives and recognition programs for companies that generate foreign exchange earnings by attracting international clients and expanding Pakistan’s IT exports. He says rewarding export-oriented success stories will encourage more businesses to pursue global markets. Such measures will directly contribute to national economic objectives and export growth.

Shahzad Arif points out that international banking processes, merchant account approvals, foreign remittance procedures, and cross-border business operations should be simplified. He says many technology companies face operational challenges when engaging with global clients and service providers. Removing these barriers will improve Pakistan’s attractiveness as a destination for technology investment and international business partnerships.

Shahzad Arif says dedicated support programs, funding mechanisms, and growth incentives should be established for startups, Software-as-a-Service (SaaS) companies, and technology entrepreneurs. He says startups are often the source of breakthrough innovations, high-value jobs, and future export revenues. Supporting entrepreneurial growth today will help build the globally competitive technology companies of tomorrow.

Concluding his recommendations, Shahzad Arif says the Federal Budget 2026–27 should not be viewed merely as an annual financial exercise. He says it should serve as a strategic roadmap for Pakistan’s economic future. Shahzad Arif says the technology sector offers a unique opportunity to generate sustainable export earnings, create high-quality employment, attract foreign investment, and position Pakistan as a competitive player in the global digital economy.

Shahzad Arif says he is confident that with the right policy measures, Pakistan’s IT industry can significantly increase its contribution to national GDP and foreign exchange reserves over the coming years. He says the talent exists, the opportunities are abundant, and the global demand for technology services continues to grow. Shahzad Arif says what is needed now is a supportive policy environment that enables businesses to innovate, scale, and compete internationally. He says the decisions made today will shape the country’s competitiveness and economic trajectory for years to come.