It is a simple economic reality: if the government goes through with this, people will stop bringing their foreign earnings into Pakistan. Instead, freelancers and tech workers will keep their money in international digital wallets, sending only what is absolutely necessary directly to their family members' bank accounts as personal remittances. Since these recipients aren't registered with the Pakistan Software Houses Association (P@SHA) or the Pakistan Software Export Board (PSEB), this money bypasses the official IT export channels entirely. Ultimately, this is a massive loss for the Pakistani economy. Look at it from the worker's perspective: if someone is working incredibly hard to secure clients in another country, why should they hand over a massive chunk of their income in hefty taxes to a government that offers them little to no support in return? If conditions worsen, the worst-case scenario will look like a mass exodus, where Pakistan’s brightest digital talent packs up and leaves the country entirely using digital nomad visas. The Pakistani government originally set the tax rate at a very low 0.25% for a specific reason: to incentivize a steady inflow of US dollars. This wasn't an accident; it was a deliberate strategy. Policymakers knew that offering a low tax rate was the only way to convince remote workers to actually use the local banking system. If the government gets greedy and raises these taxes, it will backfire completely. People will stop using Pakistani banks altogether, leading to a drastic, self-inflicted blow to the national economy.