US forum pitches tax reforms to Aurangzeb

A delegation of the American Business Forum (ABF) called on Finance Minister Muhammad Aurangzeb at the Finance Division and shared proposals for tax policy rationalisation, reduction in compliance burden, incentivisation of exports and facilitation of foreign exchange inflows, according to a statement issued by the Ministry of Finance on Thursday.

The delegation, led by ABF President Osman Khalid Waheed, emphasised the need for predictable and consistent policies to encourage long-term investment.

The finance minister briefed participants on Pakistan's improving macroeconomic outlook, highlighting progress on fiscal and external fronts as well as constructive engagement with international financial institutions and development partners.

He noted that despite global uncertainties and regional challenges, the government remains committed to maintaining macroeconomic stability and pursuing structural reforms to support sustainable growth.

The minister also apprised participants of ongoing efforts to manage energy sector challenges, strengthen supply chains and ensure effective coordination across key ministries through a high-level committee chaired by him. He emphasized that the government is closely monitoring developments and remains fully engaged with both domestic and international stakeholders to safeguard economic stability.

The ABF appreciated the government's reform agenda and proposed tax rationalisation, lower compliance burden, export incentives and forex inflows facilitation, while stressing predictable policies for long-term investment.

Representatives from the pharmaceutical sector highlighted the potential to significantly increase exports with regulatory reforms, noting the industry could expand exports from approximately $1 billion to $3-5 billion without requiring fiscal subsidies. They stressed the importance of modernising regulations and ensuring consistency in pricing decisions.

Participants from the IT and services sectors underscored the need to facilitate foreign exchange retention and incentivise export-oriented growth. Issues related to digital payments, corporate card usage and taxation of cross-border transactions were also raised.

Aurangzeb acknowledged the input provided by the delegation and reiterated the government's commitment to fostering a business-friendly environment. He assured participants that many proposals are already under consideration and that the upcoming budget would reflect a clear direction towards tax rationalisation and regulatory reforms.

The minister emphasised that policy-making is being aligned with broader economic value considerations, with a focus on promoting exports, encouraging investment and ensuring long-term sustainability.