Key features of the proposed tax policy elaborated

ISLAMABAD: Dr Faisal Hashmi, Founding Chairman of Beverages Advisory Foundation, shared key features of a proposed tax policy that can lead to rationalisation of tax burden, wider documentation and enforcement across the large and medium scale manufacturing sector while ensuring that the cumulative burden on compliant industry players does not constrain their ability to compete and grow. In an exclusive talk with Business Recorder, Dr Faisal Hashmi said that Pakistan’s manufacturing sector sits at the intersection of two important economic objectives: the need to strengthen domestic revenue mobilistion and the need to encourage investment, production and industrial growth. These objectives are not inherently contradictory. The challenge lies in designing a tax system that generates sustainable revenue without placing a disproportionate burden on businesses that are already documented and compliant. He said that the question has become particularly relevant as manufacturing begins to show signs of recovery. Large-scale manufacturing grew by 5.77 percent during July-May (2025-26), according to the Pakistan Bureau of Statistics, while the Pakistan Economic Survey 2025-26 points to a b