Economic experts and industrial experts have called on the current government to maintain the consistency of its tax and economic policies, while warning against any sudden changes that may undermine the recent sector gains.
Their reactions came in response to Pakistan Economic Survey 2024-25, which was revealed by Minister of Finance and Revenue Muhammad Aurangzeb prior to the federal budget.
Finmin, who addressed a press on the launch of the Economic Survey-a central prior budget document, revealed that the country’s GDP grew by 2.7% with inflation of 4.6% in the outgoing financial year.
He noted that Pakistan’s financial recovery, which began after the financial year 2023, gained momentum in FY 2024 and showed signs of consolidation in FY 2025, indicating a shift against sustained stability and GDP growth. “The size of the economy surpassed $ 400 billion marked for the first time, while income per capita rose to $ 1,824,” he added.
Talking about Pakinomist News Special transmission, the experts emphasized that Pakistan’s current fiscal leverage should be directed at sustainable political reforms rather than short-term relief, especially when the federal budget 2024-25 is approaching.
The prominent businessman Zubair Motiwala emphasized that Pakistan’s economic credibility has improved and now has to be activated strategically.
“We have created tax space through difficult measures – something we never have before. We must not waste it,” he said.
“I don’t think tomorrow’s budget will be easy,” Motiwala added, noting that unresolved problems such as electricity, water shortages and competitive gas prices continue to tease local industries.
“We need to seriously investigate whether production costs for domestic industries have been treated,” he said. “To reduce tasks alone is not a recipe for increasing exports.”
When commenting on taxation, Economist DR. Khaqan Najeeb incentives for retailers using digital payment systems such as Raast.
“Retailers who use Raast need to be awarded GST gears,” he said, adding, “Raast QR code is a good option. The government should also consider removing the category ‘non-files’.”
Meanwhile, Sajjad highlighted Mustafa Syed – President P@Sha – IT -sector’s improved results throughout the year, but warned against political volatility.
“This year we have shown progress in the IT sector … all we ask for is consistency in tax policy. Any negative change can regret the gains we have achieved.”
Meanwhile, economist Ali Husnain was of the opinion that it was very important for Pakistan to take on drastic reforms as the country faced regional competition.
He commented on the government’s policy and said, “Direction is right, but we have not seen big steps considered to be a game of games … We have to do a lot.”
When he explained the reasons for tax defects, tax expert Ashfaq Tola said the biggest question was that the agricultural sector paid less than 1% tax.
“The influence of the retail sector should be between 3% to 4% of GDP as an additional profit,” he said, adding that the country has potential collection of RS16,000 billion in tax if the tax was charged on the basis of equity.
Tola called the overall performance in the agricultural sector gloomy, Tola credited a stable exchange rate and fell global commodity prices for the fall in the inflation rate.
He also warned against moving against imported growth and said it will affect local industry and employment and increase the pressure on local currency. He added that imports should be opened to export -based industry and import substitution.
