In May last year, I wrote about redefining taxation in the digital age — proposing that it become the fourth “T” in our national journey. A year later, that idea feels even more timely. Today, more than ever, we must move from Technology to Transparency to Trust — and ensure our systems support inclusion, resilience, and long-term growth.
Pakistan now stands at a turning point. The challenges we face — economic, social, and digital — are real. But so is the opportunity. As we navigate an increasingly unpredictable environment, we must ask: how do we build systems that improve the lives and livelihoods of our people?
The answer lies in building intelligent and inclusive digital frameworks. Whether it’s enabling a cashless economy, expanding digital access, or driving formalisation, technology is no longer a vertical — it’s the foundation of everything.
Taxation sits at the heart of this transformation. The Overseas Investors Chamber of Commerce and Industry (OICCI), which represents more than 200 of the largest foreign investors in Pakistan, has recently submitted its taxation proposals to the federal government as part of its annual budget recommendations. Among various sectoral insights, the Chamber has also addressed key concerns of the telecommunication industry. Its proposals aim to simplify compliance, reduce tax burdens, and promote digital inclusion.
As more Pakistanis come online, there’s a timely opportunity to reassess how policy can support — rather than inhibit — digital adoption. With nearly 34.5 percent in telecom usage taxes, Pakistan ranks among the highest-taxed digital markets globally. When access becomes expensive, the digital divide grows — especially for women and low-income users.
We must shift from taxing access to taxing value. Lowering barriers to entry increases usage. And with increased usage comes documentation, transparency, and ultimately, trust.
This isn’t a theoretical argument. Economic models like the Laffer Curve demonstrate that beyond a certain point, increasing tax rates leads to diminishing returns. In digital sectors, this applies even more clearly: smarter tax policy results in greater participation and stronger long-term revenues.
At Jazz, we’ve seen this firsthand. We began as a telecom company, and today, we’re evolving into a multi-vertical ServiceCo. Through JazzCash, we processed PKR 9.4 trillion in 2024 — nearly 9 percent of Pakistan’s GDP — supporting over 20 million monthly users and more than 350,000 active merchants. We now offer local cloud and cybersecurity through Garaj and are entering healthtech and insurtech, using digital to deliver protection and care. If this transformation is possible for a company, it’s certainly possible for a country.
But policy alignment is key. The telecom sector has put forward a set of pragmatic proposals: reducing the advance tax on usage from 15 percent, removing the 75 percent non-filer surcharge, which creates disruption in prepaid systems, rationalising duties on essential equipment, and aligning sales tax at 15 percent across jurisdictions.
These are not special requests — they are practical adjustments that make digital access more affordable, usage more likely, and revenue growth more sustainable. In addition, exempting the Telecom industry from withholding taxes and shifting instead to a monthly advance tax contributions mechanism, will boost tax collections in field offices and avoid unnecessary litigation that stems from onerous record validation by both Telcos and tax authorities.
Pakistan already has the foundations. RAAST, NADRA, and high mobile penetration are already in place. We’ve laid the rails. Now we must ensure the policies running across them are built for scale, equity, and sustainability.
At Jazz, we’ve seen how digital, when deployed intentionally, delivers real results — from rural broadband to digital loans for women to inclusive AI. Our aim is not just to scale usage — but to scale impact.
Let us not overcomplicate what the moment demands. Let’s create a tax and policy environment that supports growth, inclusion, and national resilience. Let’s reset the rules — and move forward together.
(The writer is the Managing Committee member of OICCI and Chairman of the Telecom Operators Association of Pakistan. X: @aamir_ibrahim01)
Copyright Business Recorder, 2025
The writer is a member of the Managing Committee of OICCI, CEO & Chairman of the Telecom Operators Association