Karachi, April 12, 2025 – Special Assistant to Prime Minister (SAPM) for Industries and Production Division, Haroon Akhtar Khan, unveiled an ambitious plan to reduce Pakistan’s corporate tax burden despite the constraints posed by the International Monetary Fund (IMF) program.
Addressing pre-budget 2025-26 event at the Karachi Chamber of Commerce and Industry (KCCI), the SAPM stressed that rationalizing the tax regime remains a top government priority to rejuvenate industrial growth and promote investment.
During the session, SAPM Haroon Akhtar acknowledged that while the IMF’s fiscal requirements restrict aggressive tax reforms, there is still considerable room to implement business-friendly measures within the next two years. He proposed redirecting savings from reduced electricity tariffs towards cutting corporate taxes further, easing the cost of doing business for industries.
In a bold move to protect the corporate sector, SAPM outlined a proposal for a “firewall” that would prevent arbitrary investigations by agencies like NAB, FIA, and FBR. Any action against a corporate entity would first require vetting by bodies such as SECP, SBP, FPCCI, or KCCI. “We are committed to shielding honest businesses from harassment. This firewall is about ensuring fairness, not protecting wrongdoers,” he emphasized.
SAPM also revealed that for the first time since independence, Pakistan will soon introduce a comprehensive industrial policy, designed in collaboration with a globally recognized consulting firm. The policy will focus on export-led growth, import substitution, and foreign exchange reserve buildup. “Our aim is to prioritize domestic investors and rebuild local manufacturing capacity,” said Haroon Akhtar, adding that poor policy decisions in previous years had devastated key industries such as steel, paperboard, and textiles.
Highlighting recent progress, he pointed to the 10% cut in the policy rate and falling inflation as signs of recovery. “Interest rates are expected to drop further, creating more breathing space for businesses,” the SAPM added.
To support struggling enterprises, a new bankruptcy law is in the pipeline, along with dedicated revival committees for sick industrial units. Meanwhile, the Small and Medium Enterprises Development Authority (SMEDA) and the Ministry of Industries will be restructured to better serve industrial stakeholders under the Prime Minister’s new vision.
Criticizing the excessive number of approvals required to start a business, SAPM pointed out that over 350 certifications—mostly provincial—create unnecessary hurdles. He committed to streamlining the business registration process as part of broader reforms to improve Pakistan’s global ease-of-doing-business ranking.
On international trade, the SAPM expressed Pakistan’s willingness to engage with the United States on tariffs, proposing a delegation to Washington for dialogue. “We don’t want confrontation; we want strategic negotiation,” he remarked.
Business leaders, including Chairman BMG Zubair Motiwala and President KCCI Muhammad Jawed Bilwani, raised concerns about rising tax pressures, declining private sector borrowing, and the exodus of businesses to countries offering more predictable economic environments.
Echoing these concerns, the SAPM assured stakeholders that the government is fully aware of the challenges and is actively working to foster a stable, investor-friendly landscape. “Pakistan has the potential to become the next Asian Tiger,” he declared. “But it starts with creating the right policies—and we are committed to making that happen.”