Minister urges retail sector reforms

LAHORE:

Punjab Finance Minister Mian Mujtaba Shujaur Rehman highlighted the retail sector's growing importance, noting that organised retail and e-commerce have boosted local brands internationally and increased export revenues. Speaking at the 4th Pakistan Future of Retail Business Summit and Expo, he highlighted that retail and wholesale contribute over Rs20 trillion to the economy, accounting for 18% of GDP and employing over 10 million people. Despite these gains, Rehman stressed that 90% of the retail sector remains informal, limiting its potential. He advocated for modernising regulations and implementing a single-window compliance system to encourage formalisation, which would increase tax contributions and market competitiveness.

He also addressed the tax disparities, where Tier-1 retailers, representing just 10% of the sector, bear 25-30% of taxes, while smaller retailers contribute less than 5%. The minister called for reforms to ensure a fairer tax structure.