Lahore; May 08, 2025: A diverse group of businessmen, legal experts, tax specialists, and journalists analysed the new Tax Laws (Amendment) Ordinance, 2025 at a Consultative session convened today under the PILDAT Business Policy Programme in Lahore and concluded that the Ordinance will do more harm to business and investment climate of the country without any significant tax-collection benefit contrary to the anticipations of the government and FBR. The session, chaired by Mr. Shahid Hamid, eminent Constitutional Lawyer and former Governor of Punjab, brought together senior political analysts, journalists, legal and tax experts, and business leaders to discuss the implications of the recently promulgated ordinance on Pakistan’s business and investment environment. Renowned Tax Expert, Dr. Ikramul Haq delivered the key note address and presented the detailed analysis of the Ordinance and its implications for the country in general and businesses in particular.
The session included a vibrant exchange of views on how the ordinance may affect various sectors, with participants expressing concern over the lack of prior consultation with business community and their representative organizations such as the chambers of commerce, the growing complexity of the tax system, and the negative signals sent to potential investors. Speakers also referenced Pakistan’s persistently low tax-to-GDP ratio, hovering around 9.2%, and the steady decline in ease-of-doing-business rankings, as indicators that more systemic and transparent tax reforms are needed.
The Consultative Session strongly recommended that major fiscal reforms must be thoroughly debated in Parliament and through structured engagement with the business community prior to implementation. The continued practice of introducing significant economic changes through ordinances, without consultation or parliamentary scrutiny, was widely criticized for undermining the business confidence and eroding investor confidence.
Serious concerns were expressed over the proposed deputation of legal and enforcement officials to business centers, which participants viewed as a reflection of the government’s lack of trust in the business community. It was emphasized that such measures risk adding a new layer of potential corruption and reinforce a perception that businesses are being treated as suspect entities under surveillance, rather than as partners in national economic development. Many participants questioned the utility and sense of deputing physical suveilence staff in this day and age of digital technology.
The session also underscored the need to invoke and strengthen the Alternative Dispute Resolution (ADR) mechanism to address tax-related issues in a transparent, amicable, and business-friendly manner, thereby reducing litigation and building trust between taxpayers and the state.
Earlier, Mr. Ahmed Bilal Mehboob, President PILDAT emphasized the critical importance of stakeholder dialogue and transparency in tax reform processes. He noted that while tax reform is essential for improving revenue generation, the process must be inclusive and consultative to ensure credibility and compliance. He highlighted significant legal and procedural changes introduced through the ordinance and warned that the manner and timing of such changes—particularly when done through ordinances without prior public debate—could undermine business confidence and contribute to capital flight. He introduced the Business Policy Programme of PILDAT which is aimed at improving the business climate, promoting business policies which support the economy of the country and projects a positive image of the business community of Pakistan.
The session and discussion were attended by prominent figures from diverse sectors, including the session Chair, Mr. Shahid Hamid; keynote speaker, Dr. Ikram Ul Haq, Mr. Shahid Ahmed Khan, eminent Pakistani-American businessman; Ms. Huzaima Bukhari; Mr. Mujib ur Rehman Shami, Editor Daily Pakistan, senior analyst and columnist; Ms. Saira Iftikhar, General Manager Public Affairs at Friesland Campina;; Mr. Osama Naseer, Regional Head, Allied Bank Limited; Mr.Atique Ahmed Khan, CEO represented by Mr. Asim Khan Director Finance of Ghani Glass; and Mr. Mubasher Lucman, renowned journalist & columnist. PILDAT concluded the session by reaffirming the need for institutionalized public consultations before the passage of economic legislation, particularly taxation laws reform.
