ISLAMABAD: In order to create a strong fiscal policy framework that supports the long-term goals of encouraging investment, generating employment, and bolstering exports, the Pakistan Business Council (PBC) has started talks with the government.
Finance Minister Muhammad Aurangzeb and Commerce Minister Jam Kamal met Monday with PBC Chairman Shabbir Diwan, Vice-Chairperson Ms. Zeelaf Munir, CEO Ehsan Malik, and other office-bearers.
Prior to creating the federal budget for 2025–2026, the finance and commerce ministries started an ongoing consultation process, which included this meeting. All interested parties have been asked to submit bids to both ministries.
According to a formal statement, the PBC delegation offered a thorough set of suggestions and recommendations for the tax system and fiscal policies for FY26 and beyond. These suggestions seek to guarantee social development and sustainable progress while also bringing the nation’s economic goals into line.
The PBC delegation outlined important economic goals, such as expanding the tax base and formalizing the economy to balance the fiscal account and balancing the external account through exports and indigenization.
They emphasized how crucial it is to support company expansion, job creation, and socioeconomic development in order to eventually increase productivity across all industries.
The PBC delegation also suggested imposing taxes at competitive rates, creating long-term policy stability, and distributing the tax burden fairly.
Additionally, they demanded that the tax return process be made simpler, more unified, and digitalized while minimizing its negative effects on the cash flow of enterprises.
In order to expand the tax base, the PBC delegation presented a number of ideas, such as enticing non-filers to come within the tax net, rewarding tax filers, increasing accountability and transparency, and lowering the frequency of benami transactions.
They also emphasized the necessity of reducing taxpayer harassment, encouraging economic documentation, and discouraging the parking of untaxed funds in unofficial sectors.
The group was given the assurance by Finance Minister Muhammad Aurangzeb that FBR teams would meet with the PBC in the next few days to carefully review and take into account all recommendations.
In order to protect the integrity of tax policy from pressures on revenue collection, he also said that the administration had chosen to relocate the tax policy unit from the FBR to the Ministry of Finance.
The government’s determination to raise the tax-to-GDP ratio to 13.5 percent in three years was emphasized by him. By utilizing technology to increase the tax base, enhancing data analytics, and simplifying tax procedures, this objective will be achieved.
The delegation emphasized the significance of the cost of doing business in Pakistan and the need to maintain a tariff structure that prevents industry distortions and fosters its expansion during a meeting with Commerce Minister Jam Kamal.
