Govt moves toward fixed tax regime for SMEs, says SAPM Haroon Akhtar

ISLAMABAD: The government is actively working on a fixed tax regime for small and medium enterprises (SMEs) as part of broader efforts to support industrial growth and export competitiveness, Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar announced during a meeting with representatives of the SMEs in Sialkot.

Participants outlined several structural challenges, which Akhtar described as critical to address for sectors that serve as “the engine of Pakistan’s economy.” SME representatives urged the government to shift from the standard tax regime to a fixed tax system, arguing that simplified and predictable taxation would boost compliance and support business expansion.

They also flagged soaring electricity prices and restricted access to bank credit as major constraints on growth. The surgical instruments industry, a key export sector in Sialkot, raised concern over the absence of an accredited testing laboratory; an issue that they claim is preventing Pakistani products from meeting global quality requirements.

Akhtar assured the delegation that a fixed tax regime is in the works and announced an incentive package under which electricity tariffs will decrease as industrial units increase consumption. He directed Small and Medium Enterprises Development Authority (SMEDA) and the Trade Development Authority of Pakistan (TDAP) to develop a plan for establishing internationally accredited labs, while also stressing the need to upgrade existing facilities.

Noting that Sialkot’s SMEs hold “export potential worth billions of dollars,” Akhtar instructed SMEDA and urged the State Bank of Pakistan (SBP) to urgently resolve barriers to credit access. He also asked SMEDA to prepare a comprehensive progress plan ahead of an upcoming review meeting.

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