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ISLAMABAD: In a decisive move to reshape the country’s economic future, Prime Minister Shehbaz Sharif on Tuesday formed a high-powered panel, led by Finance Minister Muhammad Aurangzeb, to turn private sector proposals into tangible reforms, focusing on overhauling the struggling tax system.

The finance minister-led panel will scrutinise and implement these proposals as part of an ambitious push to revive the country’s faltering economy.

Issuing the directive, the prime minister stressed that the committee would develop a pragmatic action plan, based on a thorough evaluation of all private sector recommendations. In a meeting shortly after his return from London, Sharif outlined the government’s central focus: boosting export-driven growth and improving the business climate.

Formal sectors: Aurangzeb hints at reducing taxes

“The committee’s task is to translate the private sector’s comprehensive suggestions into actionable steps that will yield tangible results for the economy,” he said.

He reiterated the government’s commitment to fostering a competitive business environment.

“We are taking practical, deliberate steps to boost economic growth, grounded in the principle of increasing exports,” he added, underscoring the importance of business leaders and investors in shaping the country’s economic future.

The meeting was part of ongoing consultations with private sector experts aimed at identifying key reforms for the country’s long-struggling tax sector.

The prime minister’s remarks highlighted the government’s full support for the private sector as the engine of economic prosperity.

Sharif also emphasised the critical role of businesses in driving national tax revenues, noting that a robust economy would naturally enhance tax compliance and contributions.

“The key to increasing tax revenues lies in strengthening the economy. By improving our business ecosystem, we can boost compliance and contributions,” he added.

He reaffirmed his government’s commitment to long-term reforms that will make Pakistan’s business environment more competitive both regionally and globally.

He also expressed gratitude for the “comprehensive proposals” presented by private sector leaders in earlier meetings.

A statement from the Prime Minister’s Office confirmed that the tax reform working group met earlier in the day, bringing together key figures from the business community.

During the huddle, business leaders thanked the prime minister for his decision to remove the Export Development Surcharge – a move seen as easing the burden on exporters and enhancing Pakistan’s trade competitiveness.

The meeting also included a detailed discussion on the country’s tax rates across various sectors, with a comparative review of tax structures in the region. Proposals were presented to spur private sector development, increase exports, and attract investment to Pakistan.

Recommendations focused on improving the competitiveness of Pakistan’s business sector, particularly in the face of growing competition from neighbouring countries.

Copyright Business Recorder, 2025

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Owais Khan Dec 03, 2025 11:29am
Taxes on salaries class and corporate sector needs to be reduced. CVT and 7E type taxes which are not income based but wealth taxes in nature is causing flight of capital and change of tax residency
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