ISLAMABAD: A high-level delegation from the Pakistan Business Council (PBC) today called on Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb and his team to share ideas for a sound fiscal policy serving long-term objectives of promoting investment, creating jobs, supporting exports and generating resources for a achieve sustainable and equitable growth.
The PBC delegation was led by Chairman Shabbir Diwan and accompanied by Vice Chairperson Ms. Zeelaf Munir, CEO Ehsan Malik, and other office-bearers. Secretary Finance, Chairman FBR and senior officials from the Finance and Revenue divisions also attended the meeting which was part of the ongoing consultation process initiated by the Ministry of Finance and Revenue ahead of the Federal Budget for FY 2025-26.
During the session, the PBC delegation presented a comprehensive set of proposals and recommendations for fiscal policy and the tax regime for FY26 and beyond. These proposals aimed at aligning the country’s economic objectives with the goal of ensuring sustainable growth and social development.
The PBC delegation highlighted key economic objectives, including balancing the external account through exports and indigenization, as well as balancing the fiscal account by formalizing the economy and broadening the tax base. They emphasized the importance of fostering business growth, creating jobs, and driving socio-economic development, ultimately boosting productivity across sectors.
Among the proposals discussed were recommendations for promoting a fair distribution of the tax burden, the imposition of taxes at competitive rates, and the establishment of long-term policy predictability. The PBC also called for the simplification, unification, and digitization of the tax return process, while minimizing the impact on businesses’ cash flow.
In addition, the PBC delegation shared several proposals aimed at broadening the tax base, including measures to encourage non-filers to join the tax net, incentivizing tax filers, enhancing transparency, improving accountability, and reducing the prevalence of benami transactions. They also underscored the need to discourage the parking of untaxed money in informal sectors, promote the documentation of the economy, and reduce harassment of taxpayers.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb expressed his appreciation for the PBC’s proposals and assured the delegation that teams from the Federal Board of Revenue (FBR) would engage with the PBC in the coming days to thoroughly examine and consider all suggestions. The Minister emphasized the government’s commitment to ensuring an equitable, efficient, and optimal taxation system.
Senator Aurangzeb also announced that the government had decided to move the tax policy unit out of the FBR and house it within the Ministry of Finance to safeguard the integrity of tax policy from revenue collection pressures. He reiterated that the private sector is viewed as the primary driver of economic growth and that the government is committed to creating an enabling environment for businesses to thrive.
The Finance Minister further expressed concerns over Pakistan’s current tax-to-GDP ratio, which stands at a dismal 8 to 9 percent, a level he deemed unsustainable for the country’s long-term fiscal health and global standing. He stressed the government’s resolve to increase the tax-to-GDP ratio to 13.5 percent within the next three years. This goal will be pursued through broadening the tax base by leveraging technology, improving data analytics, and streamlining tax processes.
The meeting ended on a positive note, with both parties reaffirming their commitment to working collaboratively to ensure that Pakistan’s fiscal policy and tax regime are aligned with the nation’s growth and development objectives.
