Interview with Mr. Ashfaq Yousuf Tola, President TOLA ASSOCIATES
Profile:
Mr. Ashfaq Yousuf Tola is a Fellow member of the Institute of Chartered Accountants of Pakistan (ICAP) and the Institute of Cost and Management Accountants of Pakistan (ICMAP). He served as the President of the South Asian Federation of Accountants (SAFA) in the year 2025. He has been an active member in various Committees/Task Force of SAFA and has significantly contributed to the activities of SAFA. Mr. Tola was instrumental in formation of the Economic Advisory Committee of SAFA in the year 2024 and is the first Chairman of Committee tasked with providing insights on economic issues relevant to the region. He is a member of the Policy Board at the Ministry of Planning, Development, and Special Initiatives. He is an independent Director of Pakistan Development Funds Limited (PDFL).
Mr. Tola was previously the Minister of State of the Islamic Republic of Pakistan and Chairman of Pakistan’s Reforms and Resource Mobilization Commission. He also served as the President of ICAP for the term 2022-2023 and has been a member of the ICAP’s Council from 2017 to 2026. Additionally, he has held the position of Vice President of the ICAP for the term 2020-22 and led various committees of the Institute, including the Fiscal Laws, Economic Advisory and Government Relationship, Overseas Coordination, and Examination Committees. Mr. Tola is a highly experienced professional with over 35 years of expertise in diverse areas such as tax planning and advisory, assurance and business advisory services, international mergers and acquisitions, corporate finance and investment banking, financial product design and launch, and corporate affairs. Mr. Tola was a member of the Board of the Privatization Commission of Pakistan for eight years (2015-2023). In addition to his professional roles, he is a life member of the SAARC Chamber of Commerce and Industry. He has served as a technical advisor to the International Federation of Accountants (IFAC) Board member. He has also been a Member of the Board of Directors for CA Worldwide, the SAFA, and the Confederation of Asian and Pacific Accountants (CAPA). Mr. Tola has also been involved in various governmental advisory positions, such as the Tax Reforms Commission 2014, the Tax Reforms Implementation Committee of Federal Board of Revenue (FBR), the Board of the Privatization Commission – Government of Pakistan, and serving as the President of Karachi Club for four years. Furthermore, Mr. Tola is an advisor to the Institute of Policy Reforms and an honorary life member of the Karachi Press Club. Mr. Tola has made numerous contributions in the field of education. Due to his efforts, more than 2,000 students are pursuing the Chartered Accountancy profession free of charge, especially in the Province of Balochistan, through the renowned non-profit organization, Saylani Welfare Trust. Mr. Tola is highly interested in the economy of Pakistan and is knowledgeable about over 40 tax jurisdictions worldwide.
Pakistan & Gulf Economist had an exclusive conversation with Mr Ashfaq Yousuf Tola regarding Economic Indicators. Excerpts of the conversation are as follows:
Balance of trade in goods:
According to the PBS, Pakistan’s trade deficit has increased by a margin of 3.7% to $2.73 billion in March of FY26, compared to $2.63 billion in the same month of FY25. Moreover, the exports went down by 14.4% to $2.26 billion during the nine months of FY26 compared to $2.65 billion in the same month of last FY25. Further, the imports decreased by 5.4% to $5.00 billion in March of FY26 compared to $5.28 billion in the same period of FY25. Additionally, on a M-o-M basis, exports went down by almost 0.6% compared to $2.27 billion in Feb 2026. Furthermore, the country’s trade deficit decreased by 9.4% compared to $3.01 billion in Feb 2026 on a M-o-M basis.
Large scale manufacturing:
According to the PBS, Pakistan’s LSM sector showed an expansion of 8.5% in Feb 2026 on a Y-o-Y basis vs. Feb 2025. However, on a M-o-M basis, the overall output growth contracted by almost 9.0%, compared to the month of Jan 2025. Additionally, sector-wise, important groups such as cotton yarn, cotton cloth, the garment sector, and the cement industry showed a growth of 2.2%, 0.2%, 7.2%, and 11.1% respectively, in the month of Feb of FY26.
Worker’s remittances:
As per the SBP, Pakistan received a monthly remittance inflow of $3.83 billion in March 2026, recording a increase of 16.5% compared to $3.29 billion in Feb 2026 on a M-o-M basis. Similarly, on a Y-o-Y comparison, the remittance inflows went down by 5.5% when compared to $4.05 billion received a year ago in the same month.
Consumer price index inflation:
According to the PBS, the monthly inflation rate in March 2026 is reported at 7.3% on a Y-o-Y basis. The increase in inflation is due to non-perishable food items and the health, education, transport and utility sectors seeing a rise in prices. Additionally, the food inflation rates in both the urban and rural areas rose to a level of 2.9% and 4.5%, respectively. The Wholesale Price Index (“WPI”) rose at a rate of 6.7% on a Y-o-Y basis in FY26, which was recorded at -1.6% in the same month of FY25. Moreover, on a M-o-M basis, the national CPI increased by 1.2%. Additionally, the Food inflation rate has risen by 0.1% in urban areas, while a deflation of 0.6% is recorded in rural areas, on a M-o-M basis. In March 2026, core inflation, which is calculated by excluding energy and food items, rose by 7.4% and 8.4% in urban and rural areas on a Y-o-Y basis.
FBR tax revenue collection:
As per the data published by the FBR, the FBR collected PKR 9,305 billion worth of tax revenue in the Jul-March period of FY26 and failed to achieve its target of PKR 9,917 billion. As per the article by Mubarak Zeb Khan, published in Dawn titled, ‘FBR misses collection target by Rs612bn’, “Given the war-related uncertainties, higher refunds were issued deliberately to help businesses stay afloat, according to a top tax official.”
Foreign Direct Investment:
Pakistan’s net FDI has plunged by 27.0% or $502 million to $1,354 million provisionally during the Jul-March period of FY26, as compared to $1,857 million during the same period of FY25. Whereas, the total Net Foreign Investment plunged by 72.9% or $1,104 million to $411 million on a Y-o-Y basis in the Jul-March period of FY26 as against the amount of $1,515 million in the same period of FY25.