Karachi: The government has announced the extension of the Final Tax Regime (FTR) for IT exporters, a move that is expected to bolster the sector's growth and investment confidence. This extension, which prolongs the concessional tax rate of 0.25% on turnover until June 2029, aims to provide a stable and predictable operating environment for IT companies, according to a press release.

According to JS Global, the extension is seen as a positive development for companies like Systems Limited (SYS), which is anticipated to benefit significantly from these tax incentives. The firm has reiterated its "Buy" recommendation for Systems Limited, with a target price of Rs185 by June 2027. The stock is currently trading at a forecasted price-to-earnings ratio of 10.72x for the calendar year 2027, which is notably lower than its historical 10-year average of 17x.

JS Global's positive outlook on Systems Limited is further driven by expected margin expansions resulting from cost optimization strategies implemented in 2025. Additionally, the company is considering a new acquisition in the IT services sector, building on its recent acquisitions of BAT and Confiz, pending the finalization of commercial terms.