ISLAMABAD: Speakers on Tuesday called for a fair taxation system where the burden of domestic revenue mobilisation does not disproportionately fall on the poor.

Speaking at a High-Level Consultative Forum on Taxes and Business Climateconvened by Pildat, they deliberated on structural economic challenges and recommended actionable reforms for economic revival and stability.

The forum brought together leading voices from across Pakistan’s political, business, media, and civil society.

Chief Economist Dr Imtiaz Ahmed delivered the keynote address. Acknowledging the government’s commitment to reform, he noted that Pakistan’s engagement with the International Monetary Fund (IMF) had constrained fiscal flexibility saying despite limited maneuverability under the IMF programme, the government remains focused on creating a more enabling environment for business

Welcoming participants, Pildat President Ahmed Bilal Mehboob emphasised the need to reform the country’s tax system saying a predictable and fair tax structure is essential for sustainable economic growth.

He urged for simplified compliance mechanisms and called for greater focus on economic policy alongside political discourse.

Head of Corporate Affairs at FrieslandCampina Engro Pakistan Dr Mohammad Nasir voiced concern over the 18pc GST on packaged milk, stating that the tax has raised consumer prices and hindered affordability and urged policy support to formalise and stabilise the dairy value chain.

Pakistan Textile Council CEO Mohammad H. Shafqaat identified key sectoral challenges including delayed tax refunds, inconsistent energy pricing and an uncompetitive tax regime.

He proposed several reforms, including a unified tax regime taxing only profits (FTR/MTR/NTR); Fast-track tax refund processing within 48–72 hours; Integration of EOBI, Social Security, and WWF contributions; Incentives for renewable energy and SDG-aligned investments; Expanded liquidity access through DLTL, DDT, LTFF, and Export Finance Facilities Advisor to the Pakistan Banks Association Nejibur Rahman highlighted the banking sector’s excessive tax burden, with effective rates reaching 54–55pc, far above the national average. He called for a review of the ADR-based tax, describing it as unconstitutional and distortionary.

MNA and Chairperson of the National Assembly Standing Committee on Finance Naveed Qamar announced public hearings after the upcoming budget to ensure all stakeholders are heard. While supporting direct taxation, he acknowledged the constraints posed by the IMF programme.

MNA and Coordinator to the Prime Minister on Climate Change Ms Romina Khurshid Alam emphasized that the 2025-26 Budget presents a vital opportunity to align climate and economic priorities saying Climate-compatible taxation and incentives can unlock new export markets, climate finance, and green jobs — especially for women and youth.

Chairperson of the Senate Standing Committee on Finance and Revenue Senator Saleem Mandviwalla shared that for the first time the Senate Committee will review the budget and return recommendations to the National Assembly’s Finance Committee. He assured the forum that the concerns of the dairy, banking, and textile sectors were being duly considered.

Published in Dawn, May 21st, 2025