Latest Articles & Publications

Third Edition of Towards Broad, Flat, Low-rate and Predictable Taxes

Third Edition of Towards Broad, Flat, Low-rate and Predictable Taxes The study titled “Towards Broad, Flat, Low-rate and Predictable Taxes” by Huzaima Bukhari and Dr. Ikramul Haq analyses the structural and operational weaknesses of the existing tax system at federal level and suggests alternate solutions in the areas that require fundamental reforms.  This study, as updated in October 2024 argues that taxpayers have to deal with multiple tax agencies adding to their cost of doing business and the non-existence of tax-related benefits is the most neglected area of our discourse on reforms. It highlights the existing four-tier tax appellate system, how it has failed to deliver and the alternate system which can be adopted.  Download the Book

Read More »

GVC Integration: Exploring Pakistan’s Trade Potential with Southeast Asian Nations

GVC Integration: Exploring Pakistan’s Trade Potential with Southeast Asian Nations In the current era of globalization, countries are forming trade pacts to increase economic growth and become more integrated into global value chains, which is driving global trade. Pakistan’s situation is similar since it is now pursuing many proposed FTAs (35) to access prospective markets for export diversification. This study aims to demonstrate potential avenues for enhancing trade relations between Pakistan and the ASEAN region. It is worth noting that Pakistan is pursuing a ‘Vision East Asia’ policy, which aims to enhance relationships with East Asian and ASEAN countries; in contrast, ASEAN members’ ‘Look West’ policy aims to engage economically with South Asian countries. Together, these two policies provide forth a thorough blueprint for Pakistan and ASEAN to cooperate toward a common goal and strengthen their bilateral relations. Currently, the two-way trade between the two is worth about USD 12bn. Pakistan engages in substantial fish and fish product exports to many countries, including Japan, Thailand, China, Malaysia, the Middle East, and Sri Lanka. From 2015 to 2019, the country’s seafood exports increased from 128,081 tons to 205,752 tons. Significant growth in China’s imports of fisheries from Pakistan was observed subsequent to the implementation of the China-Pakistan Free Trade Agreement (CPFTA), with values ascending from USD 24.64mn in 2006 to USD 91.78mn in 2019. This expansion can be attributed in part to Chinese firms operating in Pakistan. Moreover, the Thai enterprises possess the capacity to investigate collaborative partnerships within the fishing industry, specifically targeting the Halal food sector. Based on the rationale and the fact that Pakistan is a significant provider of aquatic fauna, the ASEAN countries seem to be equally intrigued by the prospect of establishing trade relations that are complementary in nature. Pakistan has a great opportunity to capitalize on its comparative advantage in the export of seafood. Hence, the study will utilize methodologies like Revealed Comparative Advantage (RCA), Export Product Dynamic (EPD), and X-Model, as adapted from (Luhur et al., 2019), to identify opportunities within the seafood sector and similar product categories. Click here

Read More »

Economic Lessons by an Entrepreneur

Economic Lessons by an Entrepreneur Author: Zartasha Inayat Only a few businesses in Pakistan have attained regional and global recognition while managing to thrive in the long run. One such success story is Interloop, one of Pakistan’s largest publicly listed textile firms and now country’s largest exporter. This article draws on insights shared by its founder, Musadaq Zulqarnain, who highlighted the business environment and policy challenges in Pakistan and emphasized that fiscal discipline and a business strategy, not financial privilege, are required to run a business. Challenges in the textile sector are well known: the lack of scalability, little value-addition in the products, and dependence on cotton-based products. Pakistan also struggles to compete with neighboring countries due to higher energy costs. Musadaq proposed certain solutions to ensure the smooth operation of the textile and other industries in Pakistan. He believes in allowing free-floating capital flows which can significantly enhance economic efficiency by allocating resources to the most productive uses. It reduces distortions caused by government-imposed capital controls, enabling a more dynamic and competitive economy. When individuals and businesses have the freedom to invest their earnings without bureaucratic hurdles, capital can flow into sectors that promise higher returns and innovation. For Pakistan, removing restrictions on capital flows could attract foreign investments, increase financial market participation, and integrate the economy into global value chains. However, robust regulatory frameworks are needed to mitigate capital flight risks and economic instability. Pakistan’s reliance on imported raw materials for the textile industry has been often identified as a challenge. Producing these materials locally is theoretically a more sustainable solution. Still, according to Musadaq, high production costs of materials domestically often surpass the cost of imports due to outdated agricultural practices, low yields, and inefficient supply chains. The lack of modern infrastructure for processing raw materials increases costs, another factor contributing to the import of raw materials.  For local production to replace imports, the final price of locally produced goods should be lower than that of imports, which is not currently the case. However, if the country’s unable to substitute the imports, it should utilize the imported raw materials efficiently. Our entrepreneur believes that Pakistan should discourage wealth creation in static sectors. Pakistan’s real estate sector has often served as a haven for wealth storage rather than an engine of economic growth. The under-taxation of real estate encourages speculative investments, which inflate property prices without contributing significantly to productive economic activity. The government should implement progressive real estate taxes and introduce and enforce taxes on idle and speculative property holdings to redirect wealth into more dynamic sectors. Commenting on the country’s youth bulge, Musadaq believes that Pakistan faces the paradox of many university graduates struggling to find employment. The root causes include a mismatch between educational outputs and market demands, outdated curricula, and insufficient emphasis on practical skills. Finally, Musadaq identified key areas that can help Pakistan in terms of growth include promoting entrepreneurship in agro-tech to modernize the agriculture sector. Similarly, the importance of services and the IT sector cannot be emphasized enough, which requires relatively less cost to be established and maintained, unlike the manufacturing sector. Pakistan can thus expand the services sector by incentivising logistics, retail, and healthcare industries. Similarly, it should provide vocational training to enhance employability and increase investment in IT infrastructure and training programs to create a competitive edge. Capitalizing on Pakistan’s rich cultural and natural heritage by developing eco-tourism and adventure tourism while improving tourism infrastructure and safety standards can help flourish tourism in the country. The article draws heavily from episode 414 of Muzamil Hasan’s Thought Behind Things (TBT) podcast, a podcast featuring Musadaq Zulqarnain.

Read More »
Prime Plus is a quarterly report published by PRIME that provides in-depth analysis of economic policies and macro-economic indicators with our views on the outlook.


50+

Social Media Programs


100+

 
Events & Seminars


200+

 
Opinion Articles


100+

 
Reports


Subscribe to Prime Newsletter

I have long cherished the hope to see an economic thinktank funded by Pakistani money. With Asian and Pakistani experience, Prime carries the promise and relevance to provide quality research work on issues and opportunities besetting and eluding Pakistani economy.

Zahid Hussain

CEO, Borjan (Pvt) Ltd

It is rightfully said by elders that in your professional life, if you have the right person to guide you and motivate you, consider it as first step towards success. I started my career formally in research sector from the Policy Research Institute of Market Economy as intern back in 2014. At that time, though PRIME was in its early stages of development but thirst for learning was there. I remember my first interaction with Sir Salman Ali which I will say brings in that spark and motivation to learn and write. Starting from scratch at that time with weak basis of research but I was never stopped from writing something, never stopped from meeting new people and never stopped from thinking in a positive direction and grow as a researcher.

Syed Shujaat Ahmad

Consultant at Sustainable Development Institute (SDPI)

Many thinktanks tend to deal with the pie-in-the-sky concepts that are far from the realities of the economy – the small and medium enterprises. From the time of its inception, I have found PRIME willing to take on policy research that is pertinent to actual problems being faced by the business communities.

Jawad Aslam

CEO, Ansaar Management Company

Tax reforms should be a priority for Pakistan’s economic prosperity and PRIME is the only avant garde thinktank in Pakistan. With your generous help, we can advance this agenda.

Rizwan Rawji

Businessman, Economist and Philanthropist (Student of Dr. Arthur B Laffer, 1978 at the University of Southern California)



Speak to us

We have experts available for media comments on a range of economic issues such as taxes, trade policy, industrial policy and regulations. Please give us a call at +923330588885



For Businesses

We can undertake research & advocacy projects in the business and economics domain according to specific requirements as long as they do not conflict with our mission and editorial integrity.