Federal Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal has called for comprehensive tax reforms, stronger resource mobilization and rapid digitalization to provide the financial foundation required for achieving the objectives of Uraan Pakistan. He made the remarks while chairing a meeting on the National Economic Mission of Uraan Pakistan focused on tax reforms and digitalization, according to the Associated Press of Pakistan. The minister said Pakistan would need substantial changes across its economic structure to achieve the programme’s long-term targets.
Ahsan Iqbal said Mission-2, which covers tax reforms and resource mobilization, is one of the 11 National Economic Missions approved by the National Economic Council and serves as the financial engine for the broader Uraan Pakistan programme. He explained that the government would not be able to generate the resources required for the other 10 missions without improving revenue generation through reliable and effective sources. The 11 missions approved by the National Economic Council are aimed at transforming Pakistan into a $1 trillion economy by 2035.
The minister said the National Economic Council is the country’s highest constitutional economic decision-making body and stressed that the targets under Uraan Pakistan are achievable, but only if the country undertakes transformation across all major sectors. He cautioned that attempting to reach a $1 trillion economy while maintaining existing economic structures and practices would be extremely difficult. According to him, Pakistan cannot achieve the required level of transformation by continuing with a business-as-usual approach.
Ahsan Iqbal emphasized that Pakistan needs to move away from conventional economic methods and accelerate its transition toward a technology-driven digital economy. He described the required pace of transformation as digital speed rather than incremental progress, highlighting technology as an important component of sustainable economic growth. While acknowledging that Pakistan has achieved a degree of economic stability, he said the current level of stability alone is not enough to guarantee sustained expansion of the economy.
The minister also pointed to changes in development spending as a challenge for Pakistan’s economic transformation. He noted that the development budget had represented a considerably larger share of gross domestic product in 2018, while its proportion of the economy has since declined significantly. He argued that achieving economic stability while maintaining a development budget of Rs2,000 billion cannot by itself be considered complete economic stability, particularly when the country needs resources for infrastructure and other development priorities.
According to Ahsan Iqbal, the shrinking development budget creates difficulties not only for launching new projects but also for completing ongoing initiatives. He said the existing structure of the national budget leaves limited space for further expansion in development expenditure, making it necessary for the government to identify new sources of funding while improving the mobilization and use of resources already available. This, he said, makes fundamental reform of the tax system a key requirement for strengthening domestic revenue generation.
The minister noted that tax collection performance has improved significantly over the past two years through efforts led by the Prime Minister. However, he said the next major challenge is to expand the country’s tax base and increase collection while simultaneously reducing tax rates. He argued that lowering the tax burden while bringing more individuals and businesses into the formal tax system should become a central priority of economic policy. Such reforms, he said, would help strengthen domestic resource mobilization without relying solely on higher tax rates.
Ahsan Iqbal also highlighted the importance of substantially increasing Pakistan’s exports to support faster economic growth. He described export expansion as one of the country’s most important national priorities and called for clear and achievable export targets based on comprehensive analysis and research. The minister stressed that Pakistan needs to determine the potential contribution of different sectors and establish realistic targets that can guide economic planning and implementation.
He directed the Ministry of Planning to make greater use of its analytical and research capabilities when setting export targets and assessing the potential contribution of various sectors to national growth. He said the ministry is responsible for preparing a comprehensive national development plan under the Prime Minister’s guidance and providing the plan to relevant ministries for effective implementation.
Ahsan Iqbal reiterated that achieving the objectives of Uraan Pakistan will require Pakistan to move beyond traditional economic approaches. He identified stronger domestic resource mobilization, fundamental tax reforms, technology-driven growth, digitalization and sustained export expansion as key components of the country’s economic transformation strategy.
Follow the PakBanker Whatsapp Channel for updates across Pakistan’s banking ecosystem.