Ahsan Iqbal Pushes Tax Reform, Digital Shift for $1tn Economy

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal has called for comprehensive tax reform, stronger resource mobilisation and rapid digitalisation as Pakistan works toward the economic targets set under the Uraan Pakistan programme. Chairing a meeting in Islamabad on Thursday, he said the country would need significant structural change rather than conventional economic management to achieve sustained growth.

The meeting focused on the National Economic Mission dealing with tax reforms and digitalisation. Iqbal said the initiative forms one of 11 National Economic Missions approved by the National Economic Council and is intended to generate the financial capacity required to support the broader economic transformation agenda.

According to the minister, the missions are aimed at helping Pakistan develop into a $1 trillion economy by 2035. He argued that this target would be difficult to achieve without major changes in how the economy generates revenue, deploys technology and supports development. Maintaining existing practices, he said, would not produce the scale of transformation required.

Iqbal also addressed the state of public finances, saying recent economic stability alone was not enough to secure sustainable growth. He pointed to the reduced size of the development budget relative to gross domestic product compared with 2018 and said limited fiscal space was restricting the government's ability to complete existing projects and launch new initiatives.

Tax policy was identified as a central part of the government's strategy. The minister said the challenge was to expand the tax base and increase overall collection while reducing rates, placing greater emphasis on bringing more economic activity into the documented system instead of relying on heavier burdens on existing taxpayers. He said stronger domestic revenue mobilisation would be necessary to finance national development priorities.

Digitalisation is expected to play an equally important role. Iqbal said Pakistan needed to move rapidly toward a technology-driven economy, using digital systems to improve documentation, transparency and efficiency. The shift is intended to strengthen revenue collection while also supporting a broader transition away from traditional administrative and economic methods.

Exports were another major focus of the meeting. The minister called for clear and achievable export targets based on research and analysis, directing planning authorities to assess which sectors could contribute more to foreign sales and what policy measures would be required to unlock that potential. Expanding exports, he said, would be essential if Pakistan is to achieve faster and more sustainable economic growth.

The next stage will involve converting the reform objectives into measurable plans across relevant ministries and economic sectors. Implementation will be closely tied to the government's ability to broaden the tax base, improve digital systems, mobilise additional resources and raise exports while maintaining economic stability. Progress on those areas will determine whether the 2035 economic target can move from a long-term ambition toward an achievable national programme.