Pakistan’s economic recovery strongly depends on collecting more tax — but it must be done in a smart and fair way. The country needs to raise more revenue without hurting businesses, scaring off investors, or putting too much pressure on people who are already paying their fair share.
Unfortunately, the current tax system seems to be doing the opposite. Instead of going after those who avoid taxes altogether, the government is putting more burden on the small group of people and companies who are already part of the formal economy and paying taxes regularly. This not only feels unfair but also pushes businesses away from joining the formal system. It makes people less willing to invest and lowers their trust in the government’s financial policies.
As the government prepares the national budget for 2025–26, it is very important to raise a red flag about this growing imbalance. Taxing the same group of people over and over again will not solve the problem. In fact, it will make things worse. The real solution lies in widening the tax net — making sure that more people and sectors start contributing — instead of relying on a small group to carry the entire load.
The goal should be a fair, transparent, and broad-based tax system that supports growth, encourages formalization, and restores public trust in the economy.
