Public ID: PID-GYA3QG

Updated tax treatment of advertising costs in Pakistan

in Pakistan

Trade barrier summary

Pakistan proposed a measure in its budget submissions to automatically disallow 25% of sales promotion, advertising and publicity costs where royalties or technical fees were paid to an associated company. This raised tax liabilities for multinational businesses and discouraged foreign currency outflows.

Following sustained lobbying with senior decision-makers, the draft clause was amended in the Finance Bill 2024. As a result, the disallowance became conditional rather than automatic, which has removed the blanket impact and resolved the barrier.

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Sectors affected

• Consumer and retail

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Resolved

Yes - September 2024

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Date reported

27 February 2025

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Last updated

20 May 2026

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Public ID

PID-GYA3QG

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