Prime Minister Shehbaz Sharif Advocates Direct Tax Cuts In Islamabad

On February 25, 2026, Prime Minister Shehbaz Sharif emphasized the urgent need to reduce direct taxes in the upcoming federal budget during the Pakistan Governance Forum 2026. He argued that facilitating the business community is essential for economic growth, stating, "In the upcoming budget, we must reduce direct taxes across the board to assist businesspeople and investors." He highlighted the importance of increasing production, exports, and foreign direct investment (FDI) rather than relying on tax hikes. The Prime Minister pointed out that the country's tax-to-GDP ratio has reached 10.5% and mentioned significant tax recoveries in the sugar and cement sectors, with increases of Rs36 billion and Rs60 billion respectively from 2024 to 2025. He criticized certain industries for withholding indirect taxes from consumers, calling it a major injustice to the nation, and stressed the need for a collaborative effort among all government levels and stakeholders to tackle economic challenges.