Only a business-friendly Pakistan can deliver sustainable revenue growth

By Faheem-ur-Rehman Saigol, President
Lahore Chamber of Commerce & Industry (LCCI)

The recent shortfall in revenue collection recorded by the Federal Board of Revenue (FBR) should serve as a wake-up call for policymakers. While the government has set ambitious fiscal targets, the prevailing policy environment continues to discourage growth rather than support it. No tax system can perform efficiently in an atmosphere of fear, uncertainty, and administrative harassment. For Pakistan to meet its revenue goals, the state must first create the conditions that allow businesses to breathe, operate, and expand.

The businessfolk has long been emphasizing that economic growth and revenue growth go hand in hand. Taxes are not generated by coercion; they are generated when businesses are encouraged to invest, innovate, and scale up operations. The private sector, whether in industry, trade, services, technology, or manufacturing, cannot thrive when it is burdened by unpredictable policies, constant audits, aggressive raids, and discretionary powers that create anxiety rather than confidence.

It is time for the government to accept a simple economic truth: Ease of doing business is not a slogan, it is the backbone of revenue generation. Countries that collect high taxes are not those that intimidate their entrepreneurs but those that empower them. Pakistan must follow the same path.

The current environment, unfortunately, is characterized by a widening trust deficit between taxpayers and the authorities. Instead of broadening the tax base, the administrative machinery has repeatedly targeted the already-documented sector. This approach has neither increased revenue nor strengthened the economy. On the contrary, it has weakened investor confidence, slowed down industrial activity, and pushed many small and medium enterprises to the brink of closure.

To meet its goals, the government must adopt a more enlightened, pro-growth framework. I urge the authorities to undertake the following reforms:
First, end the policy of harassment. No entrepreneur should fear an FBR notice every other day. The tax ecosystem should be based on facilitation, not intimidation. When businesses feel respected, they voluntarily comply.
Second, simplify the tax system. Multiple, overlapping taxes and complex procedures create inefficiencies that discourage formalization. The government should move towards automation, single-window systems, predictable deadlines, and clear rules that eliminate discretionary judgment.

Third, restore confidence through engagement. Before introducing any new tax measure, the government must consult chambers of commerce, trade bodies, and sector-specific associations. Policies made in isolation will continue to fail.

Fourth, incentivize industrial expansion. Revenue cannot grow when industries operate below 50% capacity. The government must help reduce the cost of doing business through competitive energy tariffs, stable exchange rate policies, and access to finance at reasonable markup rates. When factories run, when exports grow, when local production increases—only then does the tax base expand sustainably.
Fifth, bring the undocumented sector into the mainstream. The honest, registered taxpayer should not carry the entire burden of national revenue. Technology, data integration, and digitization can easily help identify non-filers. But enforcement must be fair, uniform, and completely free from political or administrative influence.
Pakistan is facing economic challenges, but solutions are within reach. The state must recognize the private sector as a partner, not an adversary. The government needs revenue; the business community needs a stable environment.

These are not competing objectives—these are complementary goals.
If Pakistan truly wants to achieve its revenue targets, it must abandon the outdated belief that more pressure equals more tax. Modern economies grow through collaboration, trust, and an enabling ecosystem. A business-friendly Pakistan will automatically become a revenue-rich Pakistan.

As President of the Lahore Chamber of Commerce & Industry, I emphasize with full responsibility: Let business grow, and revenue will grow on its own. The government must shift from a culture of coercion to a vision of facilitation. Only then can we build a prosperous, stable, and economically confident Pakistan.