This analysis by Zafar ul Hasan Almas, former Joint Chief Economist and Senior Research Associate, IPS, and Dr. Asim Ehsan, Senior Research Officer, IPS, examines Pakistan’s need for a comprehensive and transparent tax policy framework. The policy insight explores weaknesses in current tax practices, including reliance on indirect and regressive levies, administrative rule-making, and the exclusion of certain revenues from the divisible pool. It also assesses taxation against principles of equity, certainty, simplicity, and efficiency. Importantly, the commentary proposes institutional reforms, including a National Tax Policy, impact assessments, stronger parliamentary oversight, broader direct-tax bases, and separation of tax policy from administration.

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