ISLAMABAD: Pakistan’s high corporate taxes are discouraging foreign direct investment (FDI), the Special Investment Facilitation Council (SIFC) said on Thursday, while the Federal Board of Revenue (FBR) stressed that any adjustments must be linked to improved compliance to prevent potential revenue losses of Rs1.6 trillion.
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The remarks came during a two-day economic dialogue hosted by the Pakistan Business Council. SIFC National Coordinator Lt. Gen. Sarfraz Ahmed acknowledged concerns raised by business leaders about the country’s corporate tax rates, noting that effective rates can reach up to 50 percent. “Who would invest in such an environment?” he asked, while assuring participants that the government is aware of the issue and working on solutions.
وزیرِ اعظم کے معاون خصوصی ہارون اختر اور نیشنل کوآرڈینیٹر SIFC لیفٹیننٹ جنرل سرفراز احمد کی وزیرِ ریلوے محمد حنیف عباسی سے وزارتِ ریلوے میں خصوصی ملاقات۔
ملاقات میں ریلوے کی اصلاحات، ترقیاتی منصوبوں اور ادارہ جاتی کارکردگی بہتر بنانے پر تفصیلی گفتگو۔
وزیرِ ریلوے نے وفد کو جاری… pic.twitter.com/G6OaCZ29TB
— Ministry of Railways – Pakistan (@MOR_Pakistan) November 28, 2025
FBR Chairman Rashid Mahmood Langrial highlighted that revisions in tax rates would be contingent on better compliance to mitigate revenue shortfalls. He also briefed business leaders on ongoing automation initiatives to enhance taxpayer facilitation and close loopholes in the system. The government is planning to phase out the super tax and rationalise corporate tax rates, but these reforms depend on active compliance improvements.
During our visit to the Islamic Republic of #Pakistan, we were delighted to hold a meeting with Lieutenant General Sarfaraz Ahmad, the National Coordinator of the Special Investment Facilitation Council (SIFC) (@sifcpakistan).
We explored opportunities to expand mutual… pic.twitter.com/TL3Qugp0KJ
— Mikayil Jabbarov (@MikayilJabbarov) November 25, 2025
Lt. Gen. Sarfraz emphasised a strategic shift in attracting FDI: the focus will first be on engaging local investors and sectoral leaders. “Let’s bring our own tycoons to the table,” he said, urging Pakistani entrepreneurs to take leadership in viable projects. He assured business leaders that SIFC would provide support, connecting local ventures with global investors, particularly from the GCC and Saudi Arabia, who are ready to invest but need clearly identified partners.
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The session underscored the importance of collaboration between the government and private sector to secure Pakistan’s economic future. SIFC and FBR officials encouraged business leaders to propose projects, highlighting that successful ventures will be fully facilitated through government channels, bridging local business with international capital.