Ayesha Mudassar

Ahead of the upcoming budget for the fiscal year 2023-24, relevant stakeholders have drafted proposals to improve the country’s economic condition. The business community said the proposals are aimed at bringing economic prosperity and ensuring equitable distribution of resources. Ahsan Malik, the CEO of Pakistan Business Council (PBC), recommended structural changes. These recommendations include reducing non-interest expenditure, prioritizing targeted subsidies, ensuring fair competion for domestic manufacturing, and helping Pakistan meet its commitments to the UN Sustainable Development Goals (SDGs). Karachi Chamber of Commerce and Industry (KCCI) President Muhammad Tariq Yusuf suggested creating a more efficient revenue generation mechanism. “Well-thought-out, fair, and regionally competitive tax system is needed to remove distortions and anomalies,” he emphasised.

Lahore Chamber of Commerce and Industry (LCCI) President Kashif Anwar suggested expanding the tax base by bringing more individuals into the tax net. Furthermore, he emphasised reducing the corporate tax rate to 15% along with lessening energy rates. Farrukh H Khan, the CEO of the Pakistan Stock Exchange (PSX), proposed to develop the capital market as it carries enormous potential for addressing structural imbalances. “A broad-based capital market helps to achieve socio-economic objectives, including increasing the number of taxpayers, raising saving and investment rates, and reducing wealth inequality,” Farrukh emphasised.

Abdullah Achakzai, President of Quetta Chamber of Commerce and Industry (QCCI), suggested the relevant authorities must take prudent measures to curb illegal trade of goods and services, which is not only causing a massive shortfall in revenue collection, but also discouraging legal businesses and documented economy. In response to the solicitation of suggestions by the Federal Board of Revenue (FBR) for the upcoming Finance Bill 2023, Faisalabad Chamber of Commerce and Industry recommended the abolition of the super tax that was imposed on companies earning above Rs150 million last year. Textile, cement, steel, oil and gas, automobiles, and other industries were among them. Rawalpindi Chamber of Commerce and Industry (RCCI) appreciated the efforts of the Ministry of Finance for current account surplus.

However, it demanded reduction in the cost of doing business and stressed on increasing exports and promoting industrialisation. The representatives of Pakistan Association of Large Steel Producers (PALSP) stated that non-issuance of letters of credit (LCs) is crippling production activities, and leading to massive layoffs. The PALSP said it believes that the Finance Bill 2023 will ease restrictions on scrap import and facilitate investment in the manufacturing sector. The stakeholders urged the government to present a business and people-friendly budget.

Credit : Independent News Pakistan-WealthPk