PBA warns heavy taxes on banks could hurt growth and lending
“PBA says banks are the government’s biggest taxpayers due to high levies, but cautions that the burden is undermining growth and credit expansion.”
Key points
- PBA says banks are the government’s biggest taxpayers due to high levies, but cautions that the burden is undermining growth and credit expansion.
- The association urges a phased, balanced tax approach to support lending, investment, and digital banking.
The Pakistan Banks Association (PBA) says the banking sector has become the single-largest contributor to government revenues because of elevated taxation, but warns the current burden is increasingly constraining the industry’s longer-term capacity.
The association argues that high corporate taxes are squeezing profitability and weakening incentives for foreign investment, while also limiting banks’ ability to expand credit to the private sector.
PBA maintains that a gradual, more balanced tax framework could improve returns, encourage capital inflows, and support broader lending and digital expansion—while still allowing the state to maintain sustainable revenues over time.
Corrections & clarifications
Spot an inaccuracy or need more detail? Email connect@newsnexus24.com. Significant updates are timestamped above.
