The Rawalpindi Chamber of Commerce and Industry (RCCI) has urged the government to bring interest rates below 10 percent and reduce electricity and gas prices in the upcoming budget to stimulate investment and industrial growth.
RCCI President Usman Shaukat said Pakistan should aim to align borrowing costs with those prevailing in other countries in the region.
Lower Interest Rates Needed for Investment
Usman Shaukat said high interest rates discourage investment and slow industrial activity.
He stressed that the benchmark interest rate should be brought below 10 percent to encourage businesses to expand and attract new investments.
According to him, lower borrowing costs would help industries grow and support economic activity.
Falling Oil Prices Offer Opportunity
The RCCI president said declining global oil prices provide the government with an opportunity to address inflation.
He said lower international oil prices could ease economic pressures and help stabilize prices in the domestic market.
According to him, the government should take advantage of the changing global environment to provide relief to businesses and consumers.
Chamber Seeks Lower Electricity and Gas Tariffs
Usman Shaukat highlighted the high cost of energy in Pakistan.
He called for reductions in electricity and gas tariffs, saying expensive utilities are increasing production costs and hurting industrial competitiveness.
He added that affordable energy is essential for sustainable economic growth and export expansion.
Tax Base Should Be Expanded
The RCCI president urged the Federal Board of Revenue (FBR) to broaden the tax base instead of increasing pressure on existing taxpayers.
He also recommended reducing corporate tax rates to make Pakistan a more attractive destination for investment.
According to him, a competitive tax regime would help strengthen the economy and encourage business activity.
Support Sought for Electric Vehicles
Usman Shaukat endorsed the government’s policy to promote electric vehicles (EVs), saying the shift helps save fuel and reduce dependence on imported energy.
However, he noted that the International Monetary Fund (IMF) is pressing for higher taxes on electric vehicles.
He proposed a differentiated policy under which smaller EVs would continue to enjoy lower taxes.
At the same time, he said imposing taxes on electric vehicles equivalent to 1,500cc conventional vehicles would not be problematic.
He also called for the continuation of tax incentives for locally manufactured electric vehicles to support the domestic industry.
Pharmaceutical Exports Offer Growth Potential
The RCCI president said Pakistan has significant opportunities to increase pharmaceutical exports.
He urged the government to issue the notification for the Pharma Export Council without delay.
He also recommended providing tax incentives to pharmaceutical exporters to help the sector expand in international markets.
According to him, supportive policies could transform pharmaceuticals into an important source of export earnings.
Focus on Growth and Competitiveness
RCCI said lower interest rates, reduced energy costs, tax reforms, and export incentives are essential for improving Pakistan’s economic competitiveness.
The chamber emphasized that measures supporting investment and industrial activity would help strengthen economic growth and create new opportunities for businesses.