ISLAMABAD: Islamabad Industrial Estate President Omais Khattak has urged the government to focus on tax system reform, a cashless economy and the blue economy in the upcoming budget, saying Pakistan needs structural measures instead of simply increasing taxes.
Presenting budget proposals, Khattak said the existing tax system had become complex and was creating difficulties for industry, exports and investment. He called for broadening the tax net, restoring the Final Tax Regime, abolishing the Super Tax, reducing corporate tax and introducing a Single Window National Sales Tax Compliance System.
Khattak said a single-window digital platform for registration, tax filing and payment could make business operations easier, reduce tax evasion and provide the government with better economic data. He cited Singapore and the United Arab Emirates as examples of countries benefiting from integrated digital tax models.
He said Pakistan’s corporate income tax rate, currently around 29 percent, was higher than the global average. According to him, reducing corporate tax for the manufacturing sector to 25 percent could support investment, industrial output and employment.
Khattak also criticised the additional burden of Super Tax, saying it was affecting industrialists and exporters already facing high energy costs, expensive financing and tough global competition. He said a tax introduced as a temporary measure now appeared to be taking a permanent form.
Cashless economy and tax documentation
Khattak said the upcoming budget should include incentives to promote a cashless economy, as a large part of Pakistan’s economic activity still takes place through cash transactions and remains outside the documented tax system.
He suggested that digital payments, fintech cards and retail-level rewards or discounts could encourage consumers to shift from cash to formal payment channels. Such measures, he said, could help document the economy and widen the tax base without placing additional pressure on existing taxpayers.
Blue economy and energy exploration
Khattak also highlighted the potential of Pakistan’s blue economy, saying fish and seafood exports had crossed $500 million for the first time. He said the opening of the Russian market had created new opportunities for Pakistani seafood products and called for further incentives for the sector.
On energy, he said rising global oil and gas prices had affected Pakistan and other economies. He urged the government to increase investment in local oil and gas exploration to help reduce energy pressure.
Khattak pointed to production from areas including Dhok Sultan in Attock and the Soghri Block, and said further exploration in Attock, Badin, Sanghar, Ghotki, Dadu, Khairpur, Karak, Hangu, Bannu, Chakwal, Jhelum, Mianwali, Sibi, Dera Bugti, Quetta and Kalat could support domestic energy needs.
He said Pakistan’s economic challenges required reforms that support industry, expand the tax base, promote documentation and unlock emerging sectors rather than relying mainly on higher taxes.
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