Planning Minister Ahsan Iqbal Calls for Fundamental Tax System Overhaul to Fuel $1 Trillion Economy Goal
Federal Minister for Planning Ahsan Iqbal urged a rapid, technology‑driven transformation of Pakistan’s tax framework and development planning, warning that business‑as‑usual will not deliver the $1 trillion economy target by 2035.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Tax reform drive is likely to boost Banks and Technology sectors, creating a Buy bias on related tickers.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- BanksPositively affected
- TechnologyPositively affected
- EconomyPositively affected
- MarketsPositively affected
Companies
Mentions in This Briefing
Sectors: Banks, Technology, Economy, Markets — Positive · Buy bias. PSX tickers: SYS, ISL. Tax reform drive is likely to boost Banks and Technology sectors, creating a Buy bias on related tickers.
Full Story
Open on Business Recorder## Minister Calls for Tax System Overhaul
Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal addressed a high‑level meeting on the national economic mission of Uraan Pakistan on Thursday. He stressed that Pakistan must shift from a “tortoise‑pace” approach to a “digital speed” strategy if it hopes to achieve rapid, sustainable growth and reach a USD 1 trillion economy by 2035.
## Tax Reforms as the Financial Engine
Iqbal highlighted Mission 2 – Tax Reforms and Resource Mobilisation, one of eleven missions approved by the National Economic Council (NEC). He described it as the “financial engine” of the entire programme, noting that without reliable revenue sources the other ten missions cannot be funded.
## Need for Digitalisation and Broader Tax Base
The minister pointed to the shrinking development budget – now around Rs 2 trillion versus a much larger share of GNP in 2018 – as a constraint on fiscal space. He argued that expanding the tax base, reducing rates, and leveraging digital tools are essential to mobilise domestic resources, improve documentation, and attract higher exports.
## Challenges and Priorities
Iqbal warned that continuing to launch new development projects while existing ones remain incomplete would be unsustainable. He called for a comprehensive national development plan with clear export targets for each sector, to be prepared by the Ministry of Planning under the prime minister’s guidance.
## Outlook
The minister credited recent improvements in tax collection over the past two years but said the next step is to increase the number of taxpayers while lowering the tax burden, using technology to streamline compliance.
## Shariah Perspective
While the announcement does not involve a specific transaction, the push for a more efficient, transparent tax system aligns with Shariah principles of fairness and accountability in economic activity. Investors should monitor how the reforms affect sectors reliant on fiscal policy, especially banking and technology firms that stand to benefit from a broader, digitised tax base.