While tax targets continue to dominate budget discussions and policy headlines, a deeper look beneath the surface reveals a more pressing challenge: the structural and institutional limitations that consistently hinder Pakistan’s long-term economic progress. In a recent joint commentary published by the Pakistan Banks Association (PBA), Zafar Masud, Chairman of the PBA, and senior journalist Farhan Bokhari dissect the shortcomings of fiscal optics and call for a fundamental policy reset.
The authors argue that Pakistan’s economic debate must shift from narrow tax collection goals to broader, system-oriented reform. Their analysis makes a strong case for moving beyond the yearly obsession with revenue numbers and addressing the foundational issues that prevent the country from achieving sustained and inclusive growth. These issues include outdated tax frameworks, fragmented institutional structures, and a disconnect between fiscal ambition and administrative capacity.
“Headline numbers don’t tell the full story,” write Masud and Bokhari. “The reality is that Pakistan’s fiscal framework is constrained by structural inefficiencies, political short-termism, and a tax system that continues to miss large portions of the economy.” The authors stress that only a wider and more equitable tax net—paired with administrative modernization and institutional accountability—can put the economy on a more resilient footing.
They emphasize that Pakistan’s chronic underperformance in tax collection is not merely a result of insufficient rates or policy proposals, but of implementation gaps and poor institutional alignment. These weaknesses have created an environment where a small segment of formal businesses and salaried individuals bear a disproportionate share of the tax burden, while large parts of the economy remain untouched.
The piece also explores how repeated short-term fixes have prevented meaningful reforms. From poorly integrated digital systems to vague compliance mechanisms, Masud and Bokhari illustrate how systemic disconnects across institutions—especially between tax authorities and financial institutions—have led to operational inefficiencies and eroded trust in the policy process.
They argue that genuine reform will require aligning the country’s fiscal goals with the structural realities on the ground. This includes enhancing the autonomy of tax authorities, leveraging digital platforms to improve compliance and transparency, and simplifying the tax code to encourage wider participation across all segments of the economy.
The article has resonated strongly within Pakistan’s banking and business community, drawing attention from senior executives and thought leaders across major banks including HBL, UBL, Meezan Bank, National Bank of Pakistan, and several digital banking platforms such as easypaisa and Mobilink Bank.
The PBA’s intervention serves as a timely reminder that economic recovery and growth cannot be engineered through numbers alone. Lasting impact will only come through realignment of priorities—where fiscal sustainability, institutional reform, and inclusivity are not competing objectives but integrated goals. The article positions this broader strategy as essential not just for stability, but for building a future-ready economic ecosystem.