The Finance Ministry and the International Monetary Fund (IMF) have launched a two-day workshop in Islamabad to discuss reforms aimed at simplifying the country’s tax system, broadening the tax base and supporting economic growth.
The workshop, titled “Reforms for a Modern and Growth-Friendly Tax System in Pakistan,” is being held on October 20-21, 2026. It brings together senior government officials, representatives of the IMF and World Bank, international tax experts, academics and private-sector leaders to discuss ways to make taxation more efficient, predictable and supportive of investment.
Finance Minister Muhammad Aurangzeb delivered the opening remarks alongside Jihad Azour, director of the IMF’s Middle East and Central Asia Department, and Rodrigo Valdés, director of the IMF’s Fiscal Affairs Department, according to a Finance Division press release.
Pakistan, IMF discuss unified sales tax and simpler income taxes
The workshop features six sessions covering taxation and economic growth, modernization of Pakistan’s tax system, a unified sales tax regime across federal and provincial governments, a simpler income tax structure, tax administration and digitalization, and fiscal federalism and provincial tax revenues.
Discussions on a unified sales tax regime will examine ways to improve coordination between the federal government and provinces. Participants will also consider how a simpler and more neutral income tax system could support investment and business expansion.
Another key area is the modernization of tax administration, including digitalization, compliance and taxpayer trust. The discussions aim to identify approaches that improve revenue collection while making the tax system more transparent and predictable for taxpayers.
Workshop to set priorities for tax reform
The two-day event will conclude with a high-level panel to consolidate recommendations, identify priority actions and establish a framework for continued engagement among stakeholders.
The initiative reflects the government’s stated commitment to developing a broader and fairer tax system that can mobilize revenue, encourage investment, support business growth and improve productivity.
The Finance Division said the workshop would focus on building a more efficient, simpler and growth-friendly tax framework, with discussions spanning both federal and provincial taxation.
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