Financial Experts and Business Leaders Discuss Tax Reforms

Pakistan is currently facing significant economic challenges, including high inflation and dwindling forex reserves. To address these issues, financial experts and top businessmen in the country are emphasizing the importance of effective tax collection and the use of technology. A recent live broadcast on Geo News, 'Great Debate,' gathered insights from economists and prominent entrepreneurs.

During the debate, various key points were raised. Zafar Masud highlighted significant leakages amounting to Rs3.5 trillion in tax collection and suggested the elimination of subsidies. Asif Peer emphasized that increasing employment opportunities can lead to higher tax revenue, especially from the salaried class. Ziad Bashir pointed out the tax burden on industries, with retailers contributing significantly to the GDP but only a fraction in taxes.

Economist Syed Ali Hasnain criticized the government's handling of finances, noting a heavy reliance on bank lending. Mohammad Sohail highlighted tax leakages in industries and suggested an increase in the tax-to-GDP ratio. Arif Habib advocated against imposing a wealth tax, emphasizing the need to boost economic activity instead.

The participants also discussed the importance of digitization in tax collection and the need to address issues such as expensive utilities and high tax rates affecting industries. Nassir Salim stressed the shift towards a digital economy, while emphasizing the role of technology in reducing expenses and combating the subsidy culture.

In conclusion, the experts agreed that urgent reforms are needed to improve the economic situation in Pakistan. Privatization was seen as a successful strategy, with a focus on strengthening regulatory bodies and promoting local investments in the privatization process.