Islamabad, July 21, 2025 – Leading exporters from key sectors have called on the government to reinstate the Final Tax Regime (FTR) in a bid to revive sustainable export growth and restore confidence within the business community.
A high-level delegation representing the Sialkot Chamber of Commerce and Industry, the Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), and the Pakistan Hosiery Manufacturers Association (PHMA) met with Haroon Akhtar Khan, Special Assistant to the Prime Minister (SAPM) on Industries and Production, in Islamabad on Monday.
During the meeting, exporters expressed deep concern over the shift from the long-standing Final Tax Regime to the Normal Tax Regime under the Finance Act 2024. According to the delegation, the previous FTR offered exporters a simple, transparent, and corruption-free taxation framework that encouraged compliance and boosted competitiveness in global markets. They warned that the current tax framework is proving to be a burden, particularly for small and medium-sized exporters who now face increased scrutiny, costs, and procedural complexities.
Exporters emphasized that the Final Tax Regime was instrumental in enhancing Pakistan’s export capacity, and its abrupt removal risks reversing recent gains. They urged the government to promptly reinstate the final tax structure to protect jobs, attract investment, and ensure continued export momentum.
SAPM Haroon Akhtar Khan acknowledged the concerns raised by the exporters and reaffirmed the government’s commitment to address their challenges. “We are aware of the disruption caused by the removal of the Final Tax Regime and are actively evaluating viable solutions,” he said.
Mr. Khan assured that the Prime Minister has issued specific directives to prioritize the concerns of exporters and the broader business community. He further revealed that a comprehensive proposal is being developed to introduce a uniform definition of SMEs under the upcoming Industrial Policy—aimed at ensuring equitable access to fiscal and regulatory benefits.
“The upcoming policy will provide a stable, investor-friendly environment, and we will consider the reintroduction of the Final Tax Regime as part of broader industrial reforms,” Khan concluded.
In the face of Pakistan’s economic challenges, exporters continue to stress that a fair, final tax system is vital to export-led recovery and long-term industrial growth.