Pakistan’s Minister of State for Finance and Revenue, Ali Pervaiz Malik, recently acknowledged that Pakistan has one of the highest tax rates in the world. However, he reassured the business community that the government is focused on expanding the country’s tax base. Once this base grows, he said, Pakistan will be in a position to reduce tax rates for the formal sector. Malik made these remarks during the Corporate Philanthropy Awards 2024, an event organized by the Pakistan Centre for Philanthropy (PCP) on Tuesday.
In his address, the minister responded to a recommendation encouraging the private sector to further its philanthropic efforts. He stated that, as a government official, he would advocate for such initiatives and push for tangible incentives for businesses. He emphasized that, due to limited fiscal space, Pakistan is forced to maintain high tax rates but promised that the government’s focus on expanding the tax base will eventually enable tax cuts, which would create room for greater corporate philanthropy.
Malik, who is part of Prime Minister Shehbaz Sharif’s cabinet, assured the audience that the government is aware of the challenges businesses face, particularly in taxation and energy sectors. He expressed confidence that ongoing reforms would open up more opportunities for sustainable economic growth in Pakistan. Highlighting early signs of recovery, including reduced inflation, a stable exchange rate, and improved credit ratings, the minister suggested that Pakistan is on the right path toward economic recovery.
The event also celebrated the significant contributions of the corporate sector to philanthropy, with a special focus on corporate social responsibility (CSR). Malik praised the PCP for its dedication to promoting philanthropy and lauded the corporate sector’s potential to drive positive social change. He noted that in today’s rapidly changing world, corporate philanthropy is essential for fostering sustainable development, and businesses have the unique ability to leverage their resources, networks, and innovation to make a meaningful difference. By aligning their philanthropic efforts with the needs of communities, he added, companies can go beyond fulfilling corporate responsibility and truly uplift lives.
This philanthropic surge was notably driven by businesses’ responses to the devastating 2022 floods. Companies such as Bank Alfalah Limited, Mari Petroleum Company Limited, and United Bank Limited were recognized for their significant contributions, with donations of Rs 2,180 million, Rs 500 million, and Rs 468 million, respectively.
The report also showed that Public Listed Companies (PLCs) contributed the largest share of the donations, amounting to Rs 17.69 billion, followed by Public Unlisted Companies (PUCs) and Private Limited Companies (Pv LCs), which contributed Rs 2.60 billion and Rs 3.36 billion, respectively.
During the awards ceremony, Minister Malik presented awards to 18 companies that made the highest contributions, both in terms of total donation volume and the percentage of donations relative to their Profit Before Tax (PBT). The award-winning companies included Mari Petroleum, Pakistan Petroleum, Oil and Gas Development Company, Sanghar Sugar Mills, Ghani Value Glass, Yunus Textile Mills, and others.
This recognition serves as an important reminder of the critical role that the corporate sector can play in addressing Pakistan’s social challenges and fostering a spirit of responsibility and generosity in the country.
