Minister of State for Finance Bilal Azhar Kayani on Friday said the government is working on a simplified and harmonised tax regime as part of efforts to promote private sector–driven, export-led growth.
Speaking in the National Assembly, he said authorities aim to reduce the number of taxes, clarify the corporate income tax structure and remove discrimination to improve compliance. He added that while enforcement strengthened last year—helping widen the tax net and raise revenues, a development he said the IMF had acknowledged—the next phase would focus on sectors that continue to remain outside the tax system despite high incomes.
Kayani said exports remain central to economic recovery and reported that the National Export Development Board, chaired by the Prime Minister, is reviewing challenges related to export competitiveness. He said the government is working on measures to reduce energy costs and improve the overall business climate.
Responding to queries about foreign firms leaving Pakistan, he said some multinationals had divested due to global restructuring decisions, but several new companies had entered the market. He added that local businesses had taken over operations from some exiting firms, reflecting confidence in Pakistan’s economic prospects.
Kayani said the Prime Minister has held extensive engagements with the business community, including a recent three-hour meeting with representatives from key sectors. He added that he meets presidents of major chambers monthly to address issues involving taxation, energy pricing and business facilitation.
He acknowledged the burden carried by the salaried class, calling them “the backbone of the nation”, and said the government intends to provide relief in future budgets once fiscal space allows.
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