The Finance Supplementary Act 2022 represents a significant milestone in Pakistan’s fiscal policy landscape. Initially introduced as the Finance (Supplementary) Bill, 2021, it was part of a comprehensive package to enhance economic documentation, widen the tax base, and address longstanding structural imbalances in the country’s taxation system. Its passage was closely tied to the need to revive the stalled $6 billion loan facility from the International Monetary Fund. The bill was not only about immediate revenue mobilization but also aimed at promoting long-term macroeconomic stability and restoring credibility in the government’s financial commitments.
Background and Rationale
Pakistan has long faced challenges in maintaining a stable tax-to-GDP ratio. With a majority of the economy operating informally and a reliance on indirect taxation, the country has struggled to raise sufficient domestic revenues to meet its development needs. The Finance Supplementary Bill was tabled as part of efforts to address these deficiencies, particularly in response to IMF concerns over revenue performance and fiscal transparency.
By proposing the withdrawal of selected tax exemptions and rationalizing rates under existing laws, the federal government aimed to strengthen the tax structure and achieve better alignment with international standards. The reform effort was closely coordinated with broader institutional changes, including amendments to the State Bank of Pakistan’s governance framework.
Legislative Path to Enactment
The bill was introduced in the National Assembly as a priority economic reform measure. Debate in the parliament underscored both support and criticism from various stakeholders. Ultimately, the bill passed by a majority vote, after which it received the President’s assent. It was then enacted into law as the Finance Supplementary Act 2022.
The enactment of the law sent a clear signal to domestic and international observers that Pakistan was serious about improving its fiscal performance. The move was particularly important in light of conditions tied to IMF program resumption and the broader goal of fiscal consolidation.
Tax Policy Adjustments and Revenue Goals
The centerpiece of the Finance Supplementary Act was the revision of various tax structures to raise approximately Rs. 375 billion in additional revenues. The government focused on three primary areas of taxation: income tax, sales tax, and federal excise duty. A significant portion of the anticipated revenue, estimated at Rs. 343 billion, was to be generated by eliminating sales tax exemptions.
The withdrawal of tax exemptions was not an isolated policy shift but part of a broader plan to make the taxation system more equitable. In previous years, certain sectors enjoyed preferential treatment, resulting in revenue leakages and market distortions. The new law aimed to reverse that trend by promoting neutrality in tax policy and expanding the scope of taxable transactions.
Elimination of Sales Tax Exemptions
Under the act, a substantial number of previously exempt items were brought under the sales tax net. These included a mix of consumer goods, industrial inputs, and luxury products. The list of affected goods ranged from imported machinery to dairy products, processed meats, and personal care items. In total, over 150 items were targeted for revised taxation, leading to a broader and more uniform application of the general sales tax.
This expansion was expected to generate a significant portion of the additional revenue and also promote documentation by incentivizing businesses to maintain proper tax records. By streamlining the tax structure, the government aimed to create a level playing field for both formal and informal sector players.
Targeting the Informal Economy
A core goal of the Finance Supplementary Act was to reduce informality in the economy. Informal transactions account for a significant share of Pakistan’s economic activity but contribute little to tax revenue. Through changes in sales tax coverage and stricter documentation requirements, the act was designed to encourage compliance and transparency.
The government also emphasized the need to monitor the supply chain more effectively. Measures to strengthen reporting obligations and introduce digital tools for invoicing and tax filing were introduced as complementary efforts. These reforms collectively aimed to integrate more businesses and individuals into the tax net without introducing excessive new burdens on already compliant taxpayers.
Focus on Equity and Fairness
One of the recurring criticisms of Pakistan’s tax system has been its regressive nature. Indirect taxes, which form a large portion of government revenues, often disproportionately affect lower-income households. The Finance Supplementary Act attempted to mitigate this by maintaining exemptions or reduced rates on essential items like staple foods, while applying standard rates to luxury and non-essential goods.
For instance, no general sales tax was imposed on basic milk cartons, while higher-end items such as formula milk above a certain price threshold were brought under the 17 percent GST bracket. This differentiation sought to balance revenue objectives with social protection goals.
Structural Realignment of Vehicle Taxation
Another key area addressed under the act was the taxation of the automotive sector, particularly hybrid and electric vehicles. The revised tax regime introduced a more progressive scale based on engine capacity and import status.
Locally assembled hybrid vehicles up to 1,800cc were subjected to an 8.5 percent sales tax, while those ranging from 1,801cc to 2,500cc faced a 12.75 percent tax. Imported electric vehicles were also brought into the tax net at a rate of 12.5 percent. Meanwhile, duties on locally manufactured vehicles saw a reduction in some categories to encourage domestic production, while larger vehicles faced higher duties. This restructuring aimed to promote environmentally friendly technology while maintaining fairness in taxation between domestic manufacturers and importers.
Strengthening the Role of the State Bank
Parallel to tax reform, the government pursued changes to the legal framework governing the State Bank of Pakistan. The amendments sought to reinforce the autonomy of the central bank, allowing it to operate independently of political influence. These changes were seen as critical for maintaining monetary stability and ensuring that inflation control remained a key policy priority.
The new legal framework also introduced stricter reporting requirements and clarified the roles and responsibilities of the central bank’s board and leadership. This institutional strengthening was intended to enhance investor confidence and align Pakistan’s monetary governance with international norms.
Aligning with IMF Objectives
The Finance Supplementary Act was an essential element in fulfilling commitments made to the IMF under the Extended Fund Facility. The IMF had previously raised concerns about the narrow tax base, inconsistent application of tax laws, and poor enforcement mechanisms. The reforms introduced through the act directly addressed many of these concerns.
By increasing the tax-to-GDP ratio, improving documentation, and eliminating preferential treatments, the government aimed to put the country on a stronger fiscal footing. These steps were necessary not just for accessing IMF funds but also for signaling a credible path toward self-reliance in the medium term.
Political Context and Public Response
As with any major fiscal reform, the Finance Supplementary Act generated significant political debate. While the government argued that the measures were necessary for economic stability, opposition parties and civil society groups raised concerns over the potential inflationary impact and the burden on the middle class.
In response, the government made certain adjustments during the legislative process to shield the most vulnerable groups. Nonetheless, the overall direction of the reform remained firm, underscoring the urgency of achieving fiscal discipline.
Administrative Reforms and Capacity Building
To support the implementation of the new tax measures, the government pledged to enhance the administrative capacity of the Federal Board of Revenue. Initiatives included investment in automation, better data sharing among government agencies, and training programs for tax officers.
Improved compliance monitoring and the introduction of real-time data systems were expected to reduce tax evasion and improve service delivery. These efforts aimed to ensure that the reforms would be more than just legislative changes and translate into tangible improvements in tax collection and governance.
Long-Term Fiscal Sustainability
The Finance Supplementary Act was not just about immediate revenue generation. It was part of a long-term strategy to reduce fiscal deficits, improve debt sustainability, and ensure that public spending could be financed through domestic resources.
The act laid the groundwork for future reforms that would further modernize the tax system, broaden the revenue base, and make fiscal policy more responsive to changing economic conditions.
Investment and Market Implications
The passage of the act was closely watched by financial markets and business stakeholders. A clear and consistent tax policy is a key factor in attracting both foreign direct investment and portfolio flows. By reducing uncertainty and demonstrating policy resolve, the government hoped to strengthen investor confidence and improve the country’s credit outlook.
Reforms in taxation, especially those that reduce exemptions and broaden the tax net, are often viewed positively by international ratings agencies. If effectively implemented, the Finance Supplementary Act could contribute to improved ratings and lower borrowing costs for the government in the future.
Expansion of Sales Tax Regime
One of the most notable fiscal measures introduced under the Finance Supplementary Act 2022 was the extension of the general sales tax (GST) across a broader range of goods and services. Over 150 items, many of which were previously exempt or taxed at reduced rates, were brought under the 17% GST umbrella. This move was designed to generate significant additional revenue and enhance the documentation of the economy.
The sales tax expansion particularly impacted goods categorized as luxury or non-essential. Items such as imported plant and machinery, dairy and meat products, beauty and dietary supplements, poultry items, computers, and various commercial goods were newly subjected to full GST. This comprehensive reclassification was implemented to align the country’s tax framework with international fiscal norms and to meet the revenue benchmarks set in the agreement with the International Monetary Fund.
Removal of Tax Exemptions
Tax exemptions worth approximately Rs. 343 billion were withdrawn, with a large portion of this amount originating from exemptions under the sales tax regime. This was one of the core strategies used to increase tax collection without raising income tax rates across the board. By eliminating exemptions, the government aimed to ensure a more equitable distribution of tax liability while minimizing leakages and inefficiencies in the system.
Items that lost their exemptions included raw materials used in the pharmaceutical industry, various seeds including cottonseed and canola, energy-efficient lighting equipment, and mobile phones in the mid-range price category. The removal of these exemptions has a dual effect—enhancing revenue collection and promoting compliance by reducing loopholes.
Automobile Sector Revisions
The automobile industry saw significant changes under the new legislation. The revised tax structure for vehicles aimed at ensuring that the growing demand for automobiles contributes fairly to public revenue while encouraging the use of environmentally friendly technology.
Hybrid cars up to 1,800cc were subjected to a new sales tax rate of 8.5%, applicable to both locally assembled and imported units. Vehicles between 1,801cc and 2,500cc faced a higher sales tax of 12.75%. The government also increased the sales tax on imported electric vehicles to 12.5%, reflecting a policy shift to balance environmental goals with fiscal needs.
Imported vehicles, particularly luxury models, saw their sales tax rate rise from 5% to 12.5%. Although the federal excise duty on these vehicles remained unchanged, the cumulative increase in taxes was substantial. Locally manufactured cars up to 1,300cc experienced a 2.5% excise duty, a reduction from the originally proposed 5%, in a move designed to shield lower-income buyers from excessive taxation.
For vehicles between 1,300cc and 2,000cc, the duty was cut from 10% to 5%, while a 10% duty was maintained on vehicles exceeding 2,100cc. These changes were carefully structured to maintain affordability for middle-class consumers while targeting higher-income individuals purchasing luxury or large-engine vehicles.
Consumer Goods and Essentials
The Finance Supplementary Act brought several everyday consumer goods into the tax net. Formula milk priced above Rs. 500 per unit was now taxed at 17%, whereas standard 200g cartons of milk remained exempt, reflecting a targeted approach aimed at minimizing the tax burden on low-income households while still generating revenue from premium products.
Beauty and dietary supplements were another category subjected to the 17% GST, part of a broader strategy to include non-essential consumer goods in the tax framework. Branded iodized salt, once exempt, was also brought under the GST regime. This approach allowed the government to selectively expand the tax base while attempting to safeguard essential goods consumed by vulnerable population segments.
Technology and Communication Products
Technology products, including mid-range mobile phones priced between $200 and $500, were brought into the sales tax net. Computers and accessories, once granted preferential tax treatment, also became subject to standard GST.
The rationale behind this move was twofold: to generate revenue from a high-demand sector and to formalize the digital economy. As more of the population turns to e-commerce and digital communication, the taxation of these products is seen as a necessary evolution of fiscal policy.
Energy and Environmental Goods
Energy-saving light bulbs and tube lights, previously encouraged through tax exemptions to promote energy conservation, were now taxed at the standard rate. Similarly, imported reusable scrap metal was no longer exempt.
The inclusion of these items in the tax base signaled a shift toward treating environmental and industrial inputs as viable revenue sources rather than exempt commodities. While critics argued that this could hamper environmental progress and raise production costs for recyclers, the government defended the decision as essential for broadening the tax base.
Pharmaceuticals and Health Products
The pharmaceutical sector also experienced a tightening of tax policies. Raw materials used in the production of medicines, which were previously exempt from GST, were now taxed. Although this raised concerns about potential cost increases in essential medicines, the government assured that mechanisms would be developed to mitigate downstream price shocks.
Beauty and dietary supplements were included in the tax base as part of a larger move to target health and wellness products that cater to niche consumer groups. This ensured that high-margin industries contribute proportionately to the national revenue.
Trade and Commercial Goods
A major part of the revenue expansion plan involved revising the tax treatment for commercial goods. Various imported items that previously enjoyed exemptions were taxed, including a wide range of luxury and consumer products.
The government also restructured customs and excise duties on many imported products, not only to increase revenue but also to protect local industries. The revision included increased duties on items that could be substituted by local production, thereby supporting domestic economic activity.
Revenue Generation Goals
The overarching goal of the Finance Supplementary Act 2022 was to raise approximately Rs. 375 billion in additional revenue. This figure included both direct and indirect tax measures, with the largest contribution expected from the revised sales tax policies. By withdrawing exemptions, increasing existing tax rates on selected goods, and expanding the tax net, the government aimed to meet the fiscal targets set under its IMF program.
At the same time, the act was expected to aid in reducing the budget deficit and financing key development programs without resorting to excessive borrowing. The planned revenue was seen as crucial for restoring investor confidence, maintaining currency stability, and ensuring sufficient resources for public welfare initiatives.
Sector-Wise Impact Analysis
The automobile sector faced the most immediate and visible impact due to higher taxes on both imported and locally assembled vehicles. While the government attempted to balance its approach by reducing the excise duty on smaller vehicles, the net effect was a notable price increase across the industry.
In the technology sector, consumers experienced a surge in the prices of phones and computer accessories. Retailers, in turn, warned of reduced sales and lower affordability for the average user. The pharmaceutical and healthcare sectors expressed concern over the tax on raw materials, fearing higher medicine prices. However, the government maintained that rebates or compensatory mechanisms would be considered to ensure that essential healthcare remained accessible.
Retailers of beauty and dietary supplements, along with branded salt producers, faced a new cost structure that necessitated pricing adjustments. Similarly, the energy and lighting industries saw their cost structures shift as formerly incentivized products became taxable. Each of these sectors was affected differently depending on their exposure to the new tax rates and the structure of their supply chains. While some industries were able to pass on the costs to consumers, others had to absorb the tax burden to remain competitive.
Strategic Considerations
The fiscal strategy behind the Finance Supplementary Act 2022 was deeply intertwined with broader economic goals. These included reducing reliance on external debt, improving revenue self-sufficiency, and achieving macroeconomic stability.
The reforms signaled a shift toward more disciplined fiscal management. By focusing on indirect taxation and the removal of selective benefits, the government emphasized a need for equity and efficiency in the tax system.
The changes also served as a foundation for long-term structural reforms, particularly in areas where tax evasion, misreporting, or under-invoicing had been common. The formalization of the economy through the wider tax net was positioned as a necessary step toward sustainable economic development.
While critics argued that indirect taxation could disproportionately affect lower-income households, the government insisted that the revised framework was designed with targeted exemptions to protect basic necessities. The intention was to place a fairer burden on consumers of high-value or luxury goods, thereby addressing inequality while increasing national revenue.
Legislative and Political Context
The Finance Supplementary Act was not passed in isolation. It came alongside the State Bank of Pakistan (Amendment) Act, reflecting a broader set of structural adjustments. These legislative moves were intended to fulfill prior actions required by the IMF and to unlock further tranches under the extended funding facility.
Within the National Assembly, the bill was subject to intense debate. While the ruling party presented it as a necessary step to save the economy, opposition members criticized it as a burden on the common citizen. Despite resistance, the bill was passed by majority vote and received presidential assent.
The government defended the legislation by citing the need for fiscal sustainability and economic sovereignty. Officials emphasized that the new taxes were carefully calibrated and targeted to minimize economic disruption while ensuring compliance with international obligations.
Revenue Generation and Budgetary Alignment
The Finance Supplementary Act 2022 served as a crucial component in aligning Pakistan’s fiscal framework with the International Monetary Fund’s stabilization goals. Through significant amendments to sales tax and excise duty regulations, the government aimed to generate additional revenue of approximately Rs. 375 billion. This revenue influx was projected to help narrow the fiscal deficit and enhance macroeconomic stability.
The removal of sales tax exemptions alone accounted for nearly Rs. 343 billion of the projected revenue. This reconfiguration of the sales tax regime was aimed at reducing distortions in the tax structure and ensuring a more equitable distribution of tax burdens. Products that had long benefited from exemptions were now brought under the standard 17% tax bracket, making the tax structure broader and less selective.
Addressing the Informal Economy
A key objective of the Finance Supplementary Act 2022 was to expand the documented economy. For years, Pakistan’s large informal sector has impeded effective tax collection. By taxing sectors and goods that previously operated under exemptions or lower rates, the legislation aimed to improve traceability and encourage formalization of business activity.
The government also signaled its intention to develop a more robust digital tax ecosystem that would capture undocumented transactions and curb leakages in revenue. While such initiatives demand time and infrastructure development, the Finance Supplementary Act set the legislative groundwork for such transformations.
Sector-Specific Impacts
Automotive Industry
The auto sector experienced significant changes, especially with adjustments to sales tax and federal excise duty. Imported vehicles saw a surge in tax rates, impacting consumer preferences and potentially reducing import volumes. Locally assembled vehicles were subject to revised tax brackets based on engine capacities, with smaller cars receiving comparatively favorable treatment.
The measures aimed to promote local assembly while curbing luxury imports. However, industry analysts highlighted concerns that these changes might reduce overall demand due to higher consumer costs.
Dairy and Food Sector
The exemption withdrawal on various dairy products and raw materials raised concerns regarding food inflation. Items like formula milk priced above Rs. 500, branded iodized salt, and other previously exempt essentials were subjected to a 17% general sales tax. This had a trickle-down effect on retail prices, raising the cost of living for many households.
While some basic food items such as 200g cartons of milk remained tax-exempt, the broader impact of sales tax expansion on everyday essentials was seen as regressive by critics. However, the government argued that these changes were necessary to boost revenues without altering income tax slabs.
Pharmaceutical Sector
One of the more controversial decisions was the taxation of raw materials used in drug manufacturing. Pharmaceutical stakeholders warned that this could escalate the prices of medicines and disrupt local manufacturing. The tax adjustments were intended to align with global best practices and encourage pharmaceutical firms to integrate into the formal economy. Nonetheless, industry resistance highlighted the need for more targeted relief or exemptions for life-saving drugs.
Consumer Behavior and Purchasing Power
The Finance Supplementary Act reshaped consumer behavior, particularly by influencing price sensitivity. As new taxes increased the retail cost of a wide range of goods—ranging from mobile phones and cosmetics to energy-saving devices—consumers had to reassess their spending priorities.
These changes disproportionately affected middle- and lower-income households, whose disposable incomes were already under strain due to inflation. Many opted for alternative, untaxed products or reduced discretionary spending, leading to a potential slowdown in retail sales.
Macroeconomic Implications
Inflationary Pressures
The introduction of taxes on a large number of items led to inflationary pressures across several sectors. Since many of the taxed goods were either necessities or essential inputs for other industries, the overall cost of production and living increased. Though inflation is a natural consequence of such sweeping reforms, it placed added pressure on an economy already grappling with rising prices.
The central bank was expected to play a balancing role by managing interest rates and ensuring adequate liquidity, but the reforms nonetheless intensified short-term economic hardship for the average citizen.
Impact on Investment Climate
While the Act aimed at increasing revenue collection, it also risked creating uncertainty among investors. Frequent changes to tax laws, particularly when they affect the cost structure of key industries, can deter long-term investment. Sectors such as manufacturing and services, which rely on price stability and predictable fiscal policies, viewed the reforms with caution.
However, some observers believed the Act signaled a shift toward greater fiscal discipline and compliance with international financial standards—an essential step for regaining investor confidence in the long run.
Public Perception and Political Reactions
The Finance Supplementary Act 2022 received mixed reactions from the public and political stakeholders. While the government emphasized the necessity of the reforms for macroeconomic stabilization, opposition parties criticized the measures as regressive and anti-poor.
Many citizens expressed dissatisfaction over the rising costs of living, particularly due to the expansion of sales tax to essential goods. Protests and media debates reflected widespread discontent, although some segments of the business community supported the long-term intent of fiscal sustainability.
International Commitments and IMF Conditions
The passage of the Finance Supplementary Act was pivotal for reviving Pakistan’s suspended $6 billion loan program with the International Monetary Fund. One of the IMF’s core conditions was for Pakistan to improve its revenue-to-GDP ratio by eliminating arbitrary tax exemptions and enhancing tax transparency.
By introducing the Finance Supplementary Act, the government demonstrated its commitment to structural reforms, thereby improving the likelihood of continued IMF support. This, in turn, helped stabilize the exchange rate and bolstered foreign exchange reserves.
Digitalization and Transparency Measures
The Act was also aligned with a broader vision of modernizing Pakistan’s tax infrastructure. The government introduced provisions aimed at strengthening documentation through digitized invoices and real-time reporting mechanisms.
Retailers and manufacturers were encouraged to integrate their point-of-sale systems with the national tax network. Although compliance remained a challenge, the groundwork for digital enforcement was laid, potentially reducing future tax evasion.
Implications for Exporters and Importers
Exporters benefited from clearer rules on input tax adjustments, which allowed for better predictability in refund claims. However, importers faced increased duties and compliance requirements, particularly in sectors such as electronics, cosmetics, and processed foods.
Some trade associations raised concerns that the increased cost of imports could lead to reduced competitiveness. Nonetheless, the government maintained that the changes would support import substitution policies and encourage local production.
Future Tax Policy Trajectory
The Finance Supplementary Act 2022 marked a clear pivot toward a consumption-based tax model. While this helped broaden the tax base, it also introduced challenges of equity and affordability. Policymakers hinted at further reforms in subsequent budget cycles, including possible revisions in income tax thresholds and greater reliance on direct taxation.
In parallel, efforts were ongoing to harmonize federal and provincial tax systems. Stakeholder consultations were expected to guide future legislation aimed at minimizing overlaps and ensuring seamless tax administration across jurisdictions.
Lessons from International Models
Pakistan’s tax reform efforts under the Finance Supplementary Act drew inspiration from other developing economies that transitioned from narrow, exemption-heavy tax systems to broader, rule-based structures. Countries like Indonesia, Egypt, and Morocco have undergone similar transformations under IMF programs, with mixed results.
Lessons from these nations underscored the importance of phasing reforms, providing targeted subsidies during transition periods, and investing in public awareness campaigns to foster compliance and support.
Administrative Challenges and Implementation
Despite its ambitious scope, the implementation of the Finance Supplementary Act 2022 faced several hurdles. The Federal Board of Revenue needed to scale up its enforcement capabilities, particularly in auditing, taxpayer registration, and digital compliance tracking.
Moreover, coordination with provincial governments remained a critical challenge, especially in sectors like agriculture and services that overlap between federal and provincial jurisdictions. Continuous policy dialogue and institutional capacity building were necessary to ensure consistent application of the law.
Public Engagement and Communication
Another area requiring attention was public communication. Many citizens were unaware of how the new taxes affected them or why the reforms were needed. This communication gap contributed to misinformation and public resistance.
The government’s future strategy included developing clearer tax guides, improving helpdesks, and using digital platforms for awareness campaigns. Engaging with chambers of commerce and professional bodies also helped build a consensus on reform priorities.
Monitoring and Evaluation Mechanisms
To assess the effectiveness of the Finance Supplementary Act, the government planned to establish periodic monitoring and evaluation benchmarks. These would include tracking revenue performance, inflation trends, and public compliance rates.
Independent audits and third-party reviews were also suggested to ensure transparency and maintain public trust in the tax reform process. The role of civil society and academia in evaluating outcomes could provide additional insights into areas needing course correction.
Institutional Reforms in the State Bank of Pakistan
In parallel with fiscal reforms, changes to the State Bank of Pakistan’s governance were enacted through the State Bank of Pakistan (Amendment) Act 2021. These changes were designed to grant greater financial and operational independence to the central bank, enhancing its ability to manage inflation and monetary policy effectively.
New provisions aimed at improving transparency and reducing political interference included clearer definitions of the central bank’s mandate, limits on government borrowing, and requirements for periodic reporting to parliament. Together with the Finance Supplementary Act, these institutional reforms formed the cornerstone of Pakistan’s broader economic stabilization and growth strategy.
Conclusion
The Finance Supplementary Act 2022 marked a significant shift in Pakistan’s fiscal policy, introduced as part of broader efforts to stabilize the economy, secure international financial assistance, and promote sustainable growth. By removing tax exemptions, expanding the sales tax base, and introducing targeted adjustments in income and excise taxes, the government sought to increase revenue collection and reduce dependency on external borrowing.
The legislative journey of the Act, alongside amendments to the State Bank of Pakistan’s operational framework, demonstrated a commitment to aligning domestic economic governance with global expectations, particularly in the context of the International Monetary Fund’s structural benchmarks. Although the measures sparked public and political debate, the long-term vision centered on economic documentation, accountability, and structural reform.
While the short-term impact of inflationary pressure and higher costs of living was widely felt, the government’s intention was to lay the groundwork for macroeconomic discipline and transparent fiscal management. Sectors such as automotive, energy, technology, and consumer goods experienced direct implications through the revised tax rates and reduced exemptions. However, the move also signaled a push toward greater tax equity and compliance.
Ultimately, the Finance Supplementary Act 2022 stands as a key moment in Pakistan’s economic reform narrative, balancing the urgency of meeting international commitments with the internal need for revenue generation and financial stability. Going forward, the success of such policies will depend on consistent enforcement, strategic expenditure planning, and public confidence in the government’s long-term economic vision.