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PBF regrets that growth has stayed at 3% for four years; warns new taxes could stop progress.
BY Mahnoor | 05-06-2026
KARACHI: Business leaders in Pakistan say the IMF program is not a reason to overtax businesses and the public. They argue that the new budget will only succeed if the government collects more money from untaxed sectors, instead of placing most of the tax burden on businesses that already pay their share.
Ahmad Jawad, leader of the Pakistan Business Forum, told The Express Tribune that the government should not use the IMF program as an excuse to push high taxes on businesses and people through the budget. Pakistan’s economy has only grown by about 3% annually for the last four years. This shows that the country urgently needs new rules that promote investment, manufacturing, and new jobs.
“The government chose to join the IMF programme on its own. However, the IMF does not force governments to increase taxes on businesses and citizens every year. To help the economy grow, we must provide real relief,” Jawad said.
He argued that collecting more tax money shouldn’t punish honest taxpayers and businesses, warning that higher taxes in the next budget could slow down the economy.
Nasheed Malik, a top researcher at Growth Securities, said that asking the IMF for money shows that the country has problems with managing its budget and leadership. However, he noted that IMF programs help the government control spending and stay disciplined. He explained that the IMF mainly cares about getting its money back and meeting specific goals, not how its rules affect everyday people. He said it is the government’s job to look after its citizens.
Jawad says it costs about 34% more to do business in Pakistan than in nearby countries, making local products less competitive abroad. He warned that adding new taxes could discourage investment and stop the economy from growing.
A government report confirmed that high costs are caused by unfair taxes on exports, difficulty getting loans, expensive electricity, and complicated trade rules. He noted that these findings support the business community’s complaints and show that the next budget must include real reforms to help exports, attract investment, and grow the economy.
Dr. Jazib Mumtaz, an expert from IBA, said the economy has been stable for the last four years. However, the next goal is to create long-lasting growth.
He suggested that the government can boost the economy by supporting industries. He added that leaders should focus on encouraging investment and growth while keeping the economy stable.
Mumtaz argued that the government should not just increase taxes on people who already pay them. Instead, he suggested collecting taxes from parts of the economy that currently do not pay, such as retail shops, real estate, and unofficial businesses.
For the upcoming June 10 budget, the PBF proposed removing the current petroleum levy and replacing it with a standard 18% sales tax on fuel. They believe this would make the tax system clearer and more honest.
The meeting also highlighted the importance of farming, especially cotton, which Jawad called Pakistan’s ‘white gold.’ He asked for specific help and rewards to boost cotton growing, improve the textile industry, and rely less on cotton from other countries.
The PBF urged the government to fund the ocean economy and modernize farming, noting that both areas could greatly increase exports and growth.
Jawad said the government must choose between investing in industry and exports or letting money go into real estate and risky bets. The group also suggested replacing the long tax process with a simple one-page form. They believe easier taxes would encourage more people to pay and increase total tax revenue.
Speaking to Prime Minister Shehbaz Sharif, Jawad said that businesses still want the government to create clear rules that help the economy grow and encourage investment.
“He said the new budget should build trust by lowering business costs, promoting useful investments, and making taxes easier to understand.”
To help exporters compete better and grow industry, Mumtaz suggested bringing back normal taxes for exporters, slowly removing the super tax, making sure sales tax refunds are paid on time, and lowering corporate tax rates.
