Govt reaffirms fair tax reform agenda

May 13, 2026 (MLN): Pakistan’s evolving tax framework and the government’s broader reform agenda took centre stage as authorities reaffirmed their commitment to improving tax collection while ensuring fairness, inclusivity, and transparency in fiscal policy.

Addressing the opening ceremony of the two-day workshop titled “Pakistan’s Evolving Tax Landscape: Challenges, Opportunities & Innovations” in Karachi, Advisor to the Finance Minister Khurram Schehzad said the government remained focused on enhancing revenue collection while aligning tax policies with the principles of equity and welfare-oriented governance.

The workshop was jointly organised by the Pakistan Tax Bar Association (PTBA) and Karachi Tax Bar Association (KTBA).

He said that under the social contract between the State and citizens, public resources must be mobilised and utilised transparently for public welfare.

He further noted that institutional reforms had been introduced by separating tax policy formulation from tax administration and collection functions.

According to the Advisor, the Tax Policy Office has now been structured independently to improve transparency, strengthen policy design, and enhance administrative efficiency.

He invited participants to submit research, proposals, and practical recommendations to the Tax Policy Office, stressing the need for a collaborative and long-term approach to reforms.

He added that while no system was perfect, the government remained committed to sustainable reforms, improved governance, and broader taxpayer facilitation.

Providing an overview of the economy, Schehzad said several sectors were showing signs of recovery despite regional and global challenges.

He stated that the government’s reform agenda was being pursued through macroeconomic stabilisation, structural reforms, Digital Pakistan initiatives, energy sector reforms, tariff rationalisation, privatisation, pension and debt reforms, and rightsizing measures.

Commenting on the economic outlook, he said Pakistan’s economic growth during the first half of the current fiscal year stood at around 3.8%, emphasising the importance of achieving durable and sustainable growth instead of cyclical recoveries followed by repeated external stabilisation measures.

He further noted that improving fiscal and external indicators were strengthening macroeconomic stability, supporting investor confidence, and reinforcing public finances.

Referring to recent fiscal performance, he highlighted that Pakistan had achieved historically strong primary surpluses alongside significant fiscal consolidation, which had contributed to improved sovereign credibility and economic resilience.

Schehzad also said Digital Pakistan reforms were being implemented at both micro and macro levels, including user-friendly digital platforms aimed at expanding access to banking and financial services across the country.

Discussing tariff reforms, he said the National Tariff Policy 2025–30 was aimed at improving productivity, enhancing industrial competitiveness, supporting exports, and integrating Pakistan more effectively with regional and global markets.

He added that the broader reform agenda sought to reduce structural inefficiencies, improve the performance of state-owned enterprises, and create a more competitive and investment-friendly economy.

He also noted that Pakistan’s ongoing economic reforms were receiving increasing international recognition, reflecting growing confidence in the country’s economic direction.

The Advisor appreciated the participation of young professionals and emerging experts in discussions on tax policy, calling their engagement an important contribution towards strengthening the national economy.

He expressed hope that recommendations emerging from the workshop would support future policy formulation and implementation.

Among those present at the event were Chairman PTBA Academy of Taxation, President KTBA, corporate leaders, and tax professionals.

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