What Could Go Wrong for SYS? 5 Risks Investors Should Know

Systems Limited (SYS) is one of Pakistan’s biggest tech success stories. The company is growing fast, expanding globally, and earning in dollars. But even strong companies face risks.

Here are 5 key challenges that could affect SYS’s future growth:

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Slower growth in key markets

SYS earns most of its revenue from international clients, especially in the Middle East (like Saudi Arabia and the UAE). But if those countries or industries slow down, SYS could see fewer orders. Like any export business, its growth depends on global demand staying strong.

A strong rupee hurts dollar earnings

Right now, SYS earns in US dollars but pays many of its costs in Pakistani Rupees, which is good for profits. But if the Rupee becomes stronger, those dollar earnings won’t stretch as far. That could reduce profits and slow growth.

Tax benefits might go away

At the moment, SYS only pays 0.25% tax on its export income (thanks to a special tax rule called FTR). But this low rate is set to expire in June 2026. If the government brings back the regular 29% tax (plus extra super tax), SYS’s profits could fall sharply by about 22%.

Keeping talent is getting harder

Pakistan has great tech talent, but many skilled professionals are now turning to freelancing. It gives them more freedom and even lower taxes. If this trend continues, SYS may struggle to keep its best people, a serious issue in the IT industry.

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The rise of AI

Artificial intelligence is changing how companies use technology. Some of the software and services SYS provides today might become less valuable tomorrow. To stay relevant, SYS will need to keep up with the latest AI trends, and maybe even rethink its pricing and strategy.

SYS is a strong company with big potential. But it’s smart to understand the risks. From changing taxes and currencies to fast-moving technology and talent issues, these challenges are worth watching, especially for long-term investors.

Source: JS Global

⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →