State Minister for Finance Azhar Bilal Kiyani highlights export growth, SME support, tax-base expansion and decentralised governance as key economic priorities.
ISLAMABAD, September 17, 2026: State Minister for Finance Azhar Bilal Kiyani has said structural governance reforms, decentralised resource allocation and greater private-sector participation are essential to breaking Pakistan’s recurring economic cycles and expanding the country’s tax base.
Addressing the Leaders in Islamabad Business Summit on Thursday, Kiyani outlined the government’s multi-pronged strategy for achieving sustainable economic growth, reducing the cost of doing business and strengthening small and medium-sized enterprises (SMEs).
Government prioritises export growth
Kiyani said Pakistan’s long-term economic stability and sustainable foreign exchange reserves depend on a substantial increase in exports.
He said the government had held extensive consultations with representatives of the private sector while formulating recent budget measures aimed at creating additional fiscal space for businesses.
The measures highlighted by the minister include a reduction in the super-tax burden on SMEs, lower advance and minimum tax rates on export proceeds, and the continuation of preferential tax treatment for IT exports.
Kiyani also highlighted the government’s tariff reduction programme, saying lower tariffs on raw materials would help reduce production costs and support technological upgrading across industries.
Decentralised governance needed for better service delivery
Discussing Pakistan’s structural and governance challenges, Kiyani said many day-to-day service delivery problems could not be effectively addressed without transferring resources and decision-making authority to the grassroots level.
He cited issues including inadequate rural infrastructure and delays in local administration, arguing that greater decentralisation could improve the delivery of public services.
The minister also stressed the need for stronger coordination between federal and provincial development allocations to ensure more efficient and effective use of public funds.
Aasan Tax Scheme aims to expand tax base
Kiyani also discussed the government’s efforts to document the economy and broaden the tax base, highlighting the newly designed Aasan Tax Scheme.
According to the minister, the scheme was developed in consultation with representatives of the retail trade.
He said around 3.5 million of Pakistan’s estimated 4.5 million retailers remain outside the tax net, highlighting the scale of the challenge facing the government in documenting the retail sector.
Kiyani said enforcement measures alone would not be sufficient to achieve large-scale economic documentation without the involvement and ownership of key stakeholders.
The new framework includes progressive penalties for non-compliance, alongside direct engagement between federal tax authorities and trade representatives to encourage voluntary registration.
Government seeks greater access to finance
Kiyani reiterated that improving access to credit for the private sector, agriculturalists and SMEs remained a key government priority.
He said greater access to finance, combined with stronger partnerships between the government and businesses, could help unlock wider economic opportunities and support broad-based national prosperity.
The minister’s remarks come as the government seeks to combine fiscal reforms, tariff rationalisation, tax-base expansion and decentralised governance with measures aimed at supporting exports and private-sector investment.