KARACHI, April 18, 2026 – Minister of State for Finance Bilal Azhar Kayani said on Saturday that the arrest powers of Federal Board of Revenue (FBR) officials have been significantly curtailed as part of wider tax and regulatory reforms aimed at improving Pakistan’s business climate.
Speaking at the Karachi Chamber of Commerce and Industry (KCCI) during consultations for the upcoming federal budget 2026–27, Kayani said amendments to Section 37A of the Sales Tax Act, 1990 had reduced discretionary powers of tax officials and strengthened safeguards for taxpayers.
“The authority of FBR officials to arrest traders has been significantly reduced, providing relief and improving ease of doing business,” he said, adding that the government remains committed to creating a more predictable regulatory environment.
The minister said the reforms were part of a broader strategy to promote sustainable, export-led growth through closer coordination with the private sector.
The meeting was attended by senior business leaders including representatives of the Businessmen Group, KCCI office-bearers, and leading exporters, alongside members of the Federal Board of Revenue.
Kayani said Karachi remains the backbone of Pakistan’s economy due to its contribution to industrial output, exports and tax revenues. He added that ongoing consultations with chambers of commerce were aimed at identifying structural bottlenecks and aligning policy with ground realities.
He highlighted that since February 2024, the government has prioritised macroeconomic stabilisation, noting improvements in inflation trends and foreign exchange reserves due to “timely and coordinated policy interventions.”
According to the minister, Pakistan is working to break its historical boom-and-bust cycle by shifting towards export-driven and investment-led growth. He said private sector participation is being strengthened in institutions such as the Small and Medium Enterprises Development Authority (SMEDA) to improve policymaking outcomes.
Kayani also pointed to financial reforms, including the success of Roshan Digital Accounts, which have attracted strong inflows from overseas Pakistanis, and Pakistan’s return to the international Eurobond market after four years, which he said reflected renewed investor confidence.
On energy pricing, he said petroleum rates are being adjusted in line with global markets, with changes passed on to consumers where possible. He added that petroleum levies have been rationalised, including zero levy on diesel and Rs80 per litre on petrol.
The minister said the government remains in regular dialogue with stakeholders and will continue to incorporate business community feedback into policy formulation.
The session concluded with exporters presenting concerns and suggestions focused on taxation, energy costs and regulatory simplification to further improve Pakistan’s export competitiveness.