'Reforming FBR could boost Pakistan’s tax revenue by 35%'

Aqeel Karim Dhedhi, chairman of AKD Group, reflected on his journey from humble beginnings in the cotton exchange to becoming one of Pakistan’s leading business figures during a podcast with Kamran Khan.

Starting as a young boy in the 7th grade, Dhedhi navigated the complexities of speculation and forward trading, learning valuable lessons about financial discipline.

“My father’s work in equity and bullion trading laid the foundation for our business,” he said, emphasizing the family’s longstanding involvement in trade, even before the partition of India.

Dhedhi highlighted the highs and lows of Pakistan’s stock market, recalling its peak capitalization of $90 billion in 2007 and its decline to $29 billion in later years. He attributed these fluctuations to a lack of regulatory oversight and systemic inefficiencies.

On privatization, Dhedhi was critical, stating, “Privatization in Pakistan has often been mishandled due to improper valuations and systemic failures. However, private management can yield better results if executed with proper checks.”

Discussing tax reforms, he proposed broadening the tax net to include rural and informal sectors, suggesting reforms in the Federal Board of Revenue (FBR). “If FBR is fixed, tax revenue can increase by 30%–35%. Automation and strict policies are crucial,” he said.

Dhedhi also urged diversification of exports beyond textiles, advocating for mining, livestock, and IT sectors to bolster the economy. He lamented missed opportunities due to outdated policies, emphasizing the potential in sectors like agriculture, which saw $8 billion in exports last year.

With a sharp critique of Pakistan’s power sector agreements and currency management, Dhedhi called for better regulation and strategic oversight to stabilize the economy and attract foreign investment.

“Pakistan’s market has potential,” he said. “Expanding market size and improving governance can unlock tremendous growth.”