To drive digital transformation in Pakistan, stakeholders recommend establishing a National Data Exchange Layer and adopting the Pakistan Digital Stack. A key proposal is to implement a 5% General Sales Tax (GST) on digital transactions, reducing operational costs and formalizing the economy. This lower tax rate would enhance transparency and improve tax collection.
Reducing Pakistan’s corporate tax rate from 29% to below 20% is also crucial for attracting investors. The current tax burden is disproportionately high compared to other developing nations. A lower tax regime would make Pakistan more competitive regionally, driving job creation and foreign direct investment (FDI). Expanding internet access and device ownership, especially for women, is also vital for promoting a digitally inclusive economy.
