A high-level delegation from the Pakistan Business Council (PBC), led by Chairman Shabbir Diwan, met with Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and his team on Monday to discuss fiscal policy proposals aimed at promoting long-term investment, creating jobs, supporting exports, and ensuring sustainable, equitable growth. The meeting was part of the ongoing consultation process initiated by the Ministry of Finance in preparation for the upcoming Federal Budget for FY 2025-26.
The PBC delegation included Vice Chairperson Ms. Zeelaf Munir, CEO Ehsan Malik, and other prominent office-bearers, who presented a detailed set of recommendations for fiscal policy and the tax regime for the year 2026 and beyond. They focused on aligning Pakistan’s economic goals with the overarching objective of ensuring sustainable growth, social development, and long-term economic stability.
Senior officials from the Ministry of Finance and Revenue, including the Secretary of Finance, Chairman of the Federal Board of Revenue (FBR), and other senior staff, attended the meeting to engage in discussions about the future direction of Pakistan’s economic policy. The PBC’s proposals, aimed at improving the country’s fiscal landscape, were met with appreciation by Minister Aurangzeb, who noted the importance of such engagements in shaping the nation’s economic future.
The PBC delegation emphasized several key economic objectives that could be pivotal for Pakistan’s long-term growth. One of the primary goals outlined was balancing the country’s external account through increased exports and indigenization of key industries. The delegation also called for reforms aimed at balancing the fiscal account by formalizing Pakistan’s economy and broadening the tax base. These steps, they argued, would foster business growth, create jobs, and drive socio-economic development, all while boosting productivity across various sectors.
Among the proposals presented by the PBC was the need for a fairer distribution of the tax burden and a more streamlined tax system. The delegation suggested simplifying, unifying, and digitizing the tax return process to reduce the administrative burden on businesses and minimize disruptions to their cash flow. They also called for measures to encourage non-filers to join the tax net, with incentives for tax filers, alongside efforts to increase transparency and reduce corruption, particularly the prevalence of benami transactions.
Additionally, the PBC highlighted the need to combat the parking of untaxed money in informal sectors and to promote the documentation of the economy. These steps, they argued, would help create a more formalized economic system and reduce the harassment of taxpayers.
Minister Aurangzeb expressed his appreciation for the PBC’s detailed proposals and assured the delegation that the FBR teams would work closely with the PBC in the coming days to examine and consider the suggestions. He reaffirmed the government’s commitment to developing a taxation system that is not only equitable but also efficient, ensuring that it aligns with the country’s long-term growth objectives.
In a significant announcement, Senator Aurangzeb shared that the government had decided to relocate the tax policy unit from the FBR to the Ministry of Finance. This move aims to safeguard the integrity of tax policy from the pressures of revenue collection, ensuring that fiscal decisions are made with a broader long-term perspective. He also expressed concern over Pakistan’s current tax-to-GDP ratio, which stands at a low 8 to 9 percent, stressing that such a level is unsustainable for the country’s fiscal health. The government’s goal is to raise this ratio to 13.5 percent over the next three years, a target they plan to achieve by broadening the tax base through technology, enhanced data analytics, and streamlined tax processes.
The meeting concluded with both parties reiterating their commitment to collaborate closely in the coming months. The PBC delegation and the Ministry of Finance agreed that by aligning fiscal policy and tax reforms with Pakistan’s economic growth objectives, the country can create a more stable, efficient, and equitable economic system.