Broaden Tax Net, Reduce Tariff Distortions Experts Call for Structural Fiscal Reforms
June 2026 | By Azad News
Financial experts have urged policymakers to broaden the tax base, increase funding for climate change and social protection, focus on job creation, and provide relief to the salaried class ahead of the federal budget 2026–27.
Speaking at a pre-budget consultation session organised by the Sustainable Development Policy Institute (SDPI), experts said Pakistan’s fiscal system still focuses on short-term crisis management instead of structural reforms.
They warned that this approach continues to deepen poverty, inequality, and climate vulnerability across the country.
As the government prepares the 2026–27 budget, experts called for prioritising human development, climate resilience, and productive investment.
SDPI Deputy Executive Director (Policy) Dr Shafqat Munir Ahmad stressed increased investment in education, health, nutrition, social protection, and climate adaptation.
He said Pakistan cannot rely on post-disaster recovery after floods, droughts, and heatwaves without investing in prevention and preparedness.
He added that social spending should be seen as an investment in productivity and long-term economic competitiveness.
On taxation, SDPI Deputy Executive Director (Research) Dr Sajid Amin Javed warned against increasing pressure on salaried taxpayers.
He noted that salaried individuals already contribute a large share of direct taxes, while major parts of the economy remain untaxed.
He recommended broadening the tax base and focusing on productivity rather than burdening middle-income households.
He also supported tariff rationalisation, saying it could improve competitiveness, attract investment, and boost exports.
Experts said Pakistan needs structural reforms instead of repeated short-term revenue measures that reduce purchasing power.
SDPI Research Fellow Dr Khalid Waleed said the budget should act as a development roadmap rather than just a financial statement.
He stressed that fiscal policy must support jobs, investment, and human capital development.
While welcoming climate budget tagging, he warned it must not become a symbolic exercise without real policy impact.
He also called for integrating climate risk into fiscal planning and strengthening renewable energy incentives.
He cautioned against inconsistent energy policies that could discourage clean energy investment.
Conclusion
Experts concluded that Pakistan’s upcoming budget must focus on structural reforms, climate resilience, and inclusive economic growth rather than short-term fiscal adjustments.
Disclaimer: This article is a rewritten, SEO-optimized summary of publicly available news content.
