The Pakistani Business Council (PBC) urged Prime Minister Shaybaz Sharif to process black funds in real estate and create a more fair environment among official and informal sectors.
In a letter to the Prime Minister, the CEO of PBC EHSAN Malik stressed the need for economic reforms before it leads to growth, warning that early motivation may undermine stability.
The message highlighted the discussions from Dialogue on the economyWhich included more than 100 local and multinational companies responsible for 40 % of Pakistan exports and a third of direct taxes. Malik acknowledged the government’s efforts to achieve stability in the economy, but he warned against repeating previous mistakes, as the demand for import led to external imbalances and relying on the International Monetary Fund. He also pointed out that the official sector holds an impatient share of the collection of tax revenues.
PBC raised concerns about high energy costs, excessive taxes, and withholding tax burden, which said the competitive export. While welcoming the government’s commitment to reduce energy costs, the council warned that the high prices of the last gas of captive plants could put Pakistani companies in a non -favorable position compared to regional competitors. PBC recommended an incentive to export measurement against South Asian competitors to enhance the competitiveness in the market.
Regarding commercial policy, the Council called for reviewing current agreements, especially with China, and pointed out that Pakistan is behind India to secure access to trade and representation in African markets. Recommendations have already participated with the Ministry of Commerce to improve trade agreements.
Regarding the financial policy, PBC supported raising the tax rate to GDP, but urged the government to achieve this by expanding the tax base rather than increasing confidence in the tax -subject sectors already. Malik warned that increasing taxes on companies that are already subject to the tax network, as shown in the current budget, would hinder expansion instead of encouraging growth.
PBC has also suggested that a hallway approach to increasing exports, helping new exporters, and enhancing local production between import -based companies. He called for tax incentives to attract investment in private stocks, investment capital, and listed companies, as well as measures to encourage more companies to include them on the Pakistan Stock Exchange.
To replace the import, PBC opposed the protection of the unlimited tariffs of unending industries, on the pretext that many production facilities are old and ineffective. However, limited protection has been supported by sectors that use original raw materials, such as soda ash to produce glass and detergents. The Council also raised concerns about the impact of the commodity and services tax on the local supplies of exporters, noting that the delay in the taxed tax amounts prompted many to rely on imports instead, threatening local industries.
Malik welcomed the government’s focus on foreign direct investment directed towards export (FDI), but stressed the need for policies that give priority to investment in investments that seek to the market.
PBC also recommended a distinguished approach to imposing taxes on real estate, which prefers the official construction sector, including real estate investment funds. The Federal Revenue Council (FBR) acknowledged the costs of high transactions on unpaved lands and review the problem, but PBC noted that official companies are also facing high costs, including GST by 18 %. The council called for measures to detect black funds tied in real estate and ensure a level playing field between official and unofficial sectors.
