Islamabad (Commerce Desk) According to economic experts, tax exemptions, customs duty concessions, and various sector-specific incentives are increasingly benefiting a limited influential class rather than the broader national economy.
The report states that the total volume of tax exemptions and incentives provided by the Federal Board of Revenue (FBR) has reached approximately Rs 2,435 billion, which is nearly one-fourth of the institution’s total tax collections.
Over the past five years, customs duty concessions have increased from Rs 288 billion to Rs 652 billion. Critics argue that these policies have failed to create real competition in industries and have instead provided undue protection to select sectors.
Sectors such as automobile and mobile phone assembly are cited as examples, where despite long-term incentives, there has been limited progress in exports, technology transfer, and local production.
The report further notes that the government adopted a five-year export-based economic roadmap in the 2025 budget, with initial results described as relatively positive.
In the first nine months of the current fiscal year, a reduction of Rs 65 billion in customs duty exemptions has also been recorded.
Experts say that if reforms continue consistently and policy-making becomes less influenced by vested interests, Pakistan could move toward a more competitive, export-oriented economy.