LAHORE: Businessmen, legal experts, tax specialists and journalists declared on Thursday that the new Tax Laws (Amendment) Ordinance, 2025 would do more harm than good to business and investment climate of the country without any significant tax-collection benefit, contrary to the anticipations of the government and the Federal Board of Revenue (FBR).

At a consultative session convened by the Pildat (Pakistan Institute of Legislative Development and Transparency) chaired by former governor Shahid Hamid, the participants discussed the implications of the recently promulgated ordinance on national business and investment environment.

Tax expert Dr Ikramul Haq presented a detailed analysis of the ordinance and its implications for the country as well as its businesses. The session was attended by Pakistani-American businessman Shahid Ahmed Khan, Huzaima Bukhari, Mujibur Rehman Shami, Saira Iftikhar, Osama Naseer and Atique Ahmed.

The participants expressed concerns over the lack of consultation with the business community and its representative organizations, the growing complexity of the tax system and negative signals sent to potential investors. They also referenced Pakistan’s persistently low tax-to-GDP ratio, hovering around 9.2pc, and the steady decline in ease-of-doing-business rankings, as indicators that more systematic and transparent tax reforms were needed.

The speakers recommended that major fiscal reforms must be thoroughly debated in Parliament and through structured engagement with the business community prior to implementation. The continued practice of introducing significant economic changes through ordinances, without consultation or parliamentary scrutiny was widely criticised for undermining the business confidence and eroding investor confidence.

Serious concerns were expressed over the proposed deputation of legal and enforcement officials to business centres, which participants viewed as a reflection of the government’s lack of trust in the business community.

It was emphasised that such measures might lead to a new layer of potential corruption and reinforce a perception that businesses were being treated as suspect entities under surveillance rather than as partners in national economic development.

Published in Dawn, May 9th, 2025