The Pasban Democratic Party (PDP) has criticized the government’s taxation policies, questioning why influential sectors such as agriculture and retail continue to remain largely outside the tax net while the burden of taxation falls on salaried individuals, businesses and ordinary consumers.
PDP Vice Chairman Azam Minhas said that every year during the federal budget process, the government imposes additional direct and indirect taxes on citizens who are already struggling with rising living costs, while large agricultural incomes, smuggling networks and participants in the black economy continue to escape meaningful taxation.
He questioned the government’s inability to effectively bring the agriculture and retail sectors into the tax system, arguing that Pakistan’s agricultural economy is comparable in size to its industrial sector. Despite this, he said, industries continue to bear a disproportionate share of the tax burden while major agricultural stakeholders enjoy significant exemptions.
According to Minhas, the unequal taxation framework is placing increasing pressure on the industrial sector and discouraging investment. He warned that multinational companies are moving capital out of Pakistan due to heavy taxation, policy uncertainty and an unfavorable business environment.
He said that unless the government creates a more investment-friendly climate, the country could face further declines in employment opportunities and economic growth.
The PDP leader called on the government to increase taxes on luxury goods instead of imposing additional taxes on everyday consumer items. He stressed that affluent individuals and sectors with substantial incomes should be brought into the tax net and required to contribute their fair share to the national exchequer.
Addressing energy-related challenges, Minhas proposed that solar panels be made completely duty-free to encourage the adoption of alternative energy sources. He argued that such a measure would help reduce electricity costs for consumers and lessen pressure on the national power grid.
He also urged the government to establish a tax system based on fairness, transparency and equality while taking stronger action against corruption. According to Minhas, meaningful economic reforms cannot succeed unless accountability is applied equally across all segments of society.
The PDP vice chairman further criticized the government’s efforts to tackle smuggling and the undocumented economy, saying that despite widespread awareness of these issues, effective enforcement measures remain limited.
He maintained that corruption has weakened public institutions and warned that economic stability and sustainable growth cannot be achieved without decisive action against corruption, tax evasion and the misuse of public resources.
Minhas said Pakistan is facing a serious governance crisis, with ordinary citizens bearing the consequences of economic mismanagement while many powerful groups continue to avoid accountability.
He emphasized that lasting economic prosperity will require broadening the tax base, strengthening institutions and ensuring that all sectors contribute fairly to the country’s development.
