ISLAMABAD: Finance Minister Muhammad Aurangzeb has conveyed to Pakistan Business Council (PBC) that the government has decided to move the tax policy unit out of the Federal Board of Revenue (FBR) and house it within the Ministry of Finance for tax policy budget preparations.
A high-level delegation from the PBC, Monday, called on Federal Minister for Finance and Revenue Muhammad Aurangzeb and his team to share ideas for a sound fiscal policy serving long-term objectives of promoting investment, creating jobs, supporting exports and generating resources for achieving sustainable and equitable growth.
The finance minister further expressed concerns over Pakistan’s current tax-to-GDP ratio, which stands at a dismal eight to nine percent, a level he deemed unsustainable for the country’s long-term fiscal health and global standing.
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He stressed the government’s resolve to increase the tax-to-GDP ratio to 13.5 percent within the next three years. This goal will be pursued through broadening the tax base by leveraging technology, improving data analytics, and streamlining tax processes.
The PBC delegation was led by Chairman Shabbir Diwan and accompanied by Vice Chairperson Zeelaf Munir, CEO Ehsan Malik, and other office-bearers. Secretary Finance, Chairman FBR and senior officials from the Finance and Revenue Division also attended the meeting which was part of the ongoing consultation process initiated by the Ministry of Finance and Revenue ahead of the Federal Budget for FY 2025-26.
Aurangzeb expressed his appreciation for the PBC’s proposals and assured the delegation that teams from the Federal Board of Revenue (FBR) would engage with the PBC in the coming days to thoroughly examine and consider all suggestions. The minister emphasised the government’s commitment to ensuring an equitable, efficient, and optimal taxation system.
Senator Aurangzeb also announced that the government had decided to move the tax policy unit out of the FBR and house it within the Ministry of Finance to safeguard the integrity of tax policy from revenue collection pressures.
He reiterated that the private sector is viewed as the primary driver of economic growth and that the government is committed to creating an enabling environment for businesses to thrive.
During the session, the PBC delegation presented a comprehensive set of proposals and recommendations for fiscal policy and the tax regime for FY26 and beyond. These proposals aimed at aligning the country’s economic objectives with the goal of ensuring sustainable growth and social development.
Copyright Business Recorder, 2025
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