Page 10 - CMA Journal (May-June 2025)

EXCLUSIVE INTERVIEW
Exclusive Interview

“
I think business confidence and private

sector investment was already very low in

Pakistan, and this budget absolutely does not

improve the situation. If anything, it makes it

worse. I think a lot of private sector people

were looking for some relief in this budget, and

that has not come about “

ICMA: What, in your view, are the major shortcomings of the
2025–26 budget from a reform perspective?
Miftah Ismail: This budget contains absolutely no reforms and is,
therefore, a complete failure from a reform perspective.
ICMA: Do you see this budget as favoring elites, or does it offer
any real relief for ordinary citizens and small businesses?
Miftah Ismail: The budget provides no relief for the ordinary
citizens or for small businesses. For salaried class people, they
talked about giving relief, but they reduced the tax rate by
0.35%. So, the highest tax bracket was 38.5%, and now it is
38.15%. There is no relief for small businesses or business
individuals. There is no relief for citizens in terms of sales tax
on various items, in terms of sales tax rates on things, in
terms of income tax, in terms of power tariffs, or gas tariffs.
ICMA: The Budget 2025-26 heavily emphasizes tax
enforcement and grants broader powers to the FBR.
Do you view this as necessary for improving
compliance, or could it lead to harassment and
discourage business activity?
Miftah Ismail: Giving more powers to FBR officers to
arrest taxpayers and to arrest those accused of tax
fraud, etc., is counterproductive. We know that FBR
officers already have the power to issue notices to
businesses, and we also know that out of the
trillions of rupees' worth of notices they issue,
they collect less than 1% in actual taxes. These
notices are mostly issued to scare businesses Dr. Miftah Ismail
and extract bribes. Similarly, now if you give
them arrest powers, that’s exactly what will Former Federal Minister for Finance & Revenue
happen. So, this is really not something that is Former Chairman, Board of Investment (BOI)
productive or likely to improve the business
climate in Pakistan. CEO & Director, Ismail Industries Limited

8 ICMA’s Chartered Management Accountant, May-June 2025