Senate finance panel calls for export-focused tax reforms to strengthen competitiveness and boost foreign exchange inflows
ISLAMABAD: The Senate Standing Committee on Finance and Revenue has recommended bringing exporters back under the Final Tax Regime (FTR), signalling support for additional tax relief measures aimed at strengthening Pakistan’s export sector and enhancing foreign exchange earnings.
The recommendation was made during the fourth consecutive session of the committee’s review of the Finance Bill 2026-27, chaired by Saleem Mandviwalla at Parliament House.
The meeting was attended by Federal Finance Minister Muhammad Aurangzeb, senators, government officials, industry representatives and stakeholders from various sectors of the economy.
Export sector support under discussion
The committee held extensive discussions on export promotion measures and received briefings from representatives of the business community and relevant government departments.
Participants reviewed proposals aimed at improving the business environment, enhancing competitiveness and addressing challenges faced by exporters.
Following detailed deliberations, committee members recommended the inclusion of exporters under the Final Tax Regime and called for further rationalisation of the tax framework to support export-led growth.
The recommendation reflects concerns raised by exporters regarding increased compliance requirements and the impact of taxation policies on the competitiveness of Pakistani products in international markets.
Focus on export-led growth
Committee members emphasised the importance of exports in supporting economic growth, generating foreign exchange and reducing external sector pressures.
The proposed recommendation is intended to simplify the taxation structure for exporters while encouraging investment and expansion in export-oriented industries.
Stakeholders informed the committee that a predictable and business-friendly tax regime is essential for maintaining competitiveness and attracting investment into manufacturing and export sectors.
Wider review of Finance Bill 2026-27
The Senate committee continued reviewing a broad range of fiscal, trade, industrial and taxation proposals contained in the Finance Bill 2026-27.
Discussions focused on measures aimed at promoting investment, supporting industrial activity, improving economic competitiveness and strengthening sustainable economic growth.
The committee also examined tariff reforms, taxation measures and broader policy initiatives designed to create an enabling environment for businesses and exporters.
Recommendations to be considered in budget process
The committee’s recommendation regarding the Final Tax Regime will form part of its observations and proposals during the parliamentary review of the federal budget.
While the recommendation is not binding, it carries significant weight as lawmakers continue deliberations on the Finance Bill before its final approval.
Business groups have consistently advocated for the continuation or restoration of the Final Tax Regime, arguing that it provides certainty, reduces compliance costs and helps exporters remain competitive in global markets.
The Senate committee is expected to continue its examination of budget proposals and taxation measures before presenting its final recommendations as part of the ongoing parliamentary budget process.
