Islamabad, May 20, 2025: The total number of Information Technology (IT) and IT-enabled Services (ITeS) firms registered with the Pakistan Software Export Board (PSEB) has reached 20,711, according to Minister for Information Technology and Telecommunication, Shaza Fatima Khawaja.
These companies are spread across the country, with Punjab leading the largest share with 10,745 registered firms. Sindh follows with 6,352, while the Islamabad Capital Territory has 3,264 companies on record. The other provinces and regions have significantly smaller registered companies in comparison.
According to the Minister, the PSEB, a government-owned company under the Ministry of Information Technology & Telecommunication was establish to boost ICT industry exports and ensure the steady progress of Pakistan’s IT sector. It provides various initiatives and schemes in collaboration with private-sector stakeholders to nurture industry advancement.
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While PSEB registration is optional for most IT companies except call centers, it offers many benefits which include paid internships, professional certifications, and subsidized participation in international events.
IT companies registered with PSEB enjoy a reduced tax rate of 0.25 percent on export income, compared to 1% for those not registered. Despite this incentive, registration and renewal remain optional, and companies can legally operate without PSEB registration. The Minister clarified that PSEB functions as a service provider rather than a regulatory authority, emphasizing its role in supporting industry growth rather than enforcing compliance.
Moreover, IT companies registered with PSEB benefit from a rduced tax rate of 0.25% on their export income. In contrast, non-registered companies are taxed at 1%.
However, despite the financial incentives, PSEB registration and renewal are not compulsory, and companies can continue to operate legally without it. The Minister clarified that the Board functions as a facilitator rather than a regulatory body, aiming to support the industry growth instead of enforcing compliance.
The Minister further stated that the IT industry in Pakistan is evolving due to rapid technological innovation and dynamic market changes. The continuous growth in IT exports has encouraged entrepreneurs to register their companies. This environment leads to a regular influx and exit of IT firms, reflecting its highly competitive and adaptive nature.
Provincial registration shows a low number in less-developed regionssuch as Khyber Pakhtunkhwa; 243 companies, Balochistan; 43 companies, Gilgit-Baltistan; 35 companies, and Azad Jammu and Kashmir; 29 companies.
This data highlights an uneven geographical distribution of IT industry development, with major focus on Punjab and Sindh. The data underscores the need targeted policy efforts to stimulate IT growth in less-represented areas.
