The ACT Alliance Pakistan welcomed the recent announcements by Federal Finance Minister Muhammad Aurangzeb and his economic team regarding the government’s ambitious plan to increase Pakistan’s tax-to-GDP ratio from 9-10% to over 13% within the next three years. This commitment to enhancing the tax base through structural reforms, digitalization, and reduced human intervention in the Federal Board of Revenue (FBR) reflects a progressive vision for a stable and equitable economy. “The Finance Minister’s focus on aligning taxpayers’ income and expenditure while avoiding excessive burdens on honest citizens is a commendable step forward,” said Mubashir Akram, National Convenor of ACT Alliance Pakistan, in a news release on Friday. “His assurance that the tax burden will be fairly distributed across all sectors sends a strong message of inclusivity and fairness. This strategy will encourage compliance and foster public trust in the system.” The Finance Minister’s remarks on reducing fiscal deficits, curbing inflation, and addressing tax gaps in critical sectors such as sugar, beverages, and cement are equally encouraging. With inflation reportedly decreasing from 30-40% to around 5%, the positive impacts of these policies are beginning to resonate with the public. Identifying 190,000 individuals for inclusion in the tax net further demonstrates the government’s commitment to ensuring wealthier individuals contribute their fair share. While lauding these efforts, ACT Alliance Pakistan calls on the Finance Minister to address the significant economic losses caused by illicit trade and tax evasion in key sectors such as petroleum products, real estate, and cigarettes. It should be noted that illicit trade alone inflicts over Rs. 8,000 billion ($29 billion) in damage to Pakistan’s economy annually. “Curbing the illicit trade is not just a fiscal necessity but now a challenge for the national economic security,” Akram stressed. ACT Alliance also requested the government to increase resources and enforcement personnel for the FBR. “Enhanced workforce and tools for FBR will strengthen enforcement measures and ensure greater apprehension of illicit traders, smugglers, tax evaders, and counterfeiters. The hardworking teams at FBR and Pakistan Customs deserve our utmost praise for their dedication under resource-constrained conditions,” he added. ACT Alliance fully supports the government’s strategy to expand the tax base instead of imposing additional taxes on businesses and ordinary citizens. “We are committed to standing by the government in its efforts to create a fair and transparent tax system while continuing to raise our voice against all forms of illicit economy and tax evasion in Pakistan,” Akram concluded.