The federal government is reviewing new economic measures aimed at reducing healthcare costs and promoting digital transactions across Pakistan.
One major proposal under discussion involves removing the 3 percent Value Added Tax (VAT) on imported finished life-saving Medicines. These products are currently listed under the 12th Schedule.
According to reports from Topline Securities, the current tax system has increased the overall burden on essential Medicines. The effective tax rate on these drugs has reportedly reached around 4 percent. Previously, the tax burden was close to 1 percent under the GST final tax system.
If approved, the proposed tax relief could reduce import costs for pharmaceutical companies. Lower landing costs may also improve the supply chain for imported Medicines across the country.
Officials believe the move could help reduce retail prices for patients. Many life-saving Medicines are already expensive for low and middle-income families. Lower taxes may improve access to important treatments and reduce pressure on household healthcare spending.
The government is also reviewing broader economic reforms linked to digital payments. Authorities are considering restrictions on large cash transactions at retail stores, restaurants, and petrol stations.
The main goal is to encourage more electronic payments and strengthen formal banking channels. Policymakers believe digital transactions can improve financial transparency and tax collection.
Experts say tighter controls on cash payments could increase the use of banking apps, debit cards, and mobile wallets. This shift may also help document economic activity more effectively.
At the same time, businesses may need time to adjust to any new rules on cash usage. Small retailers and local markets still rely heavily on cash transactions in many parts of the country.
The proposed reforms are part of wider efforts to modernize Pakistan’s economy and improve tax management. Authorities are expected to discuss these measures further during the upcoming federal budget announcement.
The proposal regarding Medicines is receiving attention from both the healthcare sector and the pharmaceutical industry. Patients and importers are also closely watching the government’s final decision.
In other related news also read Big Changes Coming That Could Affect Medicine Prices in Pakistan
If implemented, the changes could provide financial relief for consumers while supporting the country’s growing digital economy.
