To boost Pakistan’s digital economy, stakeholders recommend establishing a National Data Exchange Layer and adopting the Pakistan Digital Stack. Rationalizing taxes on digital services and infrastructure is key to encouraging investment. A proposed 5% General Sales Tax (GST) on digital transactions could reduce operational costs and formalize the economy. This lower tax rate would also enhance transparency and improve tax collection.
Reducing Pakistan’s corporate tax rate from 29% to below 20% could attract investors and encourage business expansion. A lower tax regime would foster innovation, making Pakistan more competitive regionally, driving job creation and foreign direct investment (FDI).
