Jazz Chief Financial Officer Farrukh Khan has urged the government to reduce the withholding tax from 15% to 8% in the upcoming budget for 2025-26 to bring millions into the formal digital economy.
While addressing the Pakistan Access Day in London, he underscored the critical role of enabling regulation in unlocking this potential. A key recommendation was the reduction in withholding tax on telecom services from 15% to 8%; a step he said would significantly lower the cost of digital access and bring millions more into the formal digital economy.
His remarks focused on how smart reforms, especially in taxation, can accelerate the country's journey towards an inclusive, investment-ready digital economy.
Framing Pakistan as one of the last major untapped digital frontiers, Khan emphasised that the country's opportunity lies not just in scale but in timing. "With 240 million people, rising smartphone adoption, and broadband penetration still under 60%, Pakistan is not behind; it's right on the cusp of something transformative," he noted.
He pointed out that despite the global digital shift, Pakistan's financial inclusion remains limited as only 60% of the country's 137 million adults currently have access to a formal bank account. However, he described this gap not as a constraint, but as an opportunity to leapfrog traditional models through mobile-first, tech-led solutions.
"Tax rationalisation isn't just a fiscal matter; it's central to building a digitally inclusive society," he stated.
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