SIFC Pitches Tax Cuts and Lower Rates to Spur Exports as FBR Links Relief to Compliance

Overview

• At the PBC Dialogue on Economy, SIFC’s Lt Gen. Sarfraz Ahmad proposed cutting corporate income tax from 29% to 25%, abolishing the super tax, removing inter‑corporate dividend tax, lowering interest rates, and adopting a market‑oriented exchange rate.
• He argued that Pakistan’s effective corporate tax burden exceeds 50%, which he said is deterring investment and undermining competitiveness.
• FBR Chairman Rashid Mahmood Langrial said any rate reductions will depend on measurable gains in compliance and automation to avoid large revenue losses, with estimates cited up to Rs1.6 trillion.
• SIFC outlined an export‑led growth shift that prioritises domestic investors and sector leaders, then connects bankable projects to GCC and Saudi funds through established facilitation channels.
• Officials noted weak net FDI near $1.2 billion and set an ambition to at least double inflows to around $2.5 billion annually, focusing on export‑oriented sectors, while acknowledging fiscal strain and energy circular debt.