Business leaders have urged the federal government to establish a more predictable, transparent and competitive tax system, saying policy certainty is essential for attracting investment, supporting business expansion and achieving sustainable economic growth.
The demand was raised during a meeting between Advisor to the Finance Minister Khurram Schehzad and the leadership of the Pakistan Business Council (PBC).
The meeting focused on tax reforms, privatization and broader structural measures aimed at increasing private-sector participation in the economy.
Business Community Seeks Tax Policy Stability
During the meeting, business representatives stressed that frequent changes in tax policies can create uncertainty for investors and businesses.
They called for a stable and transparent tax regime that encourages investment, improves competitiveness and supports long-term business planning.
The PBC said greater policy certainty would help businesses make investment decisions with more confidence while contributing to economic growth and job creation.
The business body also agreed to provide recommendations to the government for developing a medium-term tax policy framework.
Privatization Agenda Discussed
The meeting also reviewed the government’s privatization plans, including the proposed sale or restructuring of power distribution companies (DISCOs), banks and airports.
Participants discussed ways to improve efficiency, attract investment and enhance service delivery through greater private-sector involvement.
The participants also explored the possibility of bringing major public-sector entities to the capital market through initial public offerings (IPOs).
The State Life Insurance Corporation (SLIC) was among the entities discussed for potential listing.
Business leaders said greater participation by private and institutional investors could improve corporate governance, transparency and operational efficiency while providing companies with better access to capital.
PBC Supports Government Rightsizing
The Pakistan Business Council expressed support for the government’s rightsizing programme, calling for a leaner and more efficient public sector.
The business body agreed to provide detailed recommendations covering privatization, restructuring of state-owned enterprises (SOEs), rightsizing and ways to expand private-sector participation.
The proposals are expected to help the government improve the performance of public institutions while reducing unnecessary administrative and financial burdens.
Support for Broader Tax Base
On tax policy, the PBC welcomed the direction taken in the FY2026-27 federal budget, particularly the shift from simply increasing the tax burden toward broadening the tax base and expanding economic activity.
The council appreciated incentives introduced for exporters and businesses, saying such measures could improve competitiveness, reduce the cost of doing business and encourage new investment.
Business representatives emphasized that tax reforms should focus on creating an environment where formal businesses can grow while more economic activity is brought into the documented economy.
Government Seeks Business Community Input
Khurram Schehzad emphasized the importance of continued consultation with the business community.
He said regular engagement with businesses is important for strengthening investor confidence, improving the overall business environment and implementing sustainable economic reforms.
The government and business leaders agreed to continue working together on reforms aimed at increasing private-sector investment and improving economic performance.
The discussions come as Pakistan continues efforts to strengthen its economy, attract investment and improve the efficiency of public-sector institutions.
A stable tax framework, effective privatization policies and greater private-sector participation could play an important role in supporting the country’s long-term economic growth.
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