Karachi: The Pakistan Business Forum (PBF) says the success of the upcoming budget will depend on whether the government can raise revenue from under-taxed sectors instead of placing most of the burden on the already documented business community.
Talking to ET on thursday PBF Chief Organiser Ahmad Jawad said that Pakistan’s economic growth has remained stuck at 3 percent average for the past four years, highlighting the urgent need for policies that stimulate investment, production, and employment.
“The decision to enter the IMF programme was the government’s own choice. However, the IMF does not require governments to place an additional burden on the business community and the public every year. If the economy is to move forward, meaningful relief measures must be introduced,” he stated.
Jawad emphasized that Pakistan’s cost of doing business is currently around 34 percent higher than many countries in the region, making local industries less competitive. He warned that the imposition of new taxes in the upcoming budget could further slow economic activity and push the economy towards stagnation.
He also stated that the Ministry of Commerce, in a written submission to the National Assembly Standing Committee on Commerce, acknowledged that Pakistan’s high cost of doing business stems from several structural challenges, including an anti-export bias in the tax regime, limited access to finance, elevated energy costs that undermine industrial competitiveness, and inadequate trade facilitation measures that increase compliance burdens and transaction costs.
PBF official stated that these official findings validate the concerns repeatedly raised by the business community and underscore the need for meaningful reforms in the upcoming budget to enhance competitiveness, boost exports, attract investment, and accelerate economic growth.
The forum also proposed the abolition of the petroleum levy and its replacement with an 18 percent General Sales Tax (GST) on petroleum products to create a more transparent taxation framework in the new finance bill scheduled on June 10th.
Highlighting the importance of the agricultural sector, Jawad described cotton as Pakistan’s “white gold” and called for targeted incentives and relief measures to revive cotton production and strengthen the textile value chain.
He further stressed the need for concrete budgetary initiatives to promote the Blue Economy and modernise the agriculture sector, both of which have significant potential to drive sustainable growth and increase exports.
“The government must decide whether investment capital should flow towards industry and exports or continue to be diverted into real estate and speculative activities,” the PBF stated.
The forum also recommended the introduction of a simplified one-page tax return system instead of the existing lengthy and complex tax filing process.
According to PBF, a simplified tax return would encourage greater compliance and help broaden the national tax base.
Addressing Prime Minister Shehbaz Sharif, CO PBF Jawad said, “The business community still has high expectations from your leadership. We hope the upcoming budget will provide a clear direction and restore confidence by delivering policies that support growth, investment, and economic stability.”
PBF reiterated that a growth-oriented budget, focused on reducing business costs, encouraging productive investment, supporting agriculture, and simplifying taxation, is essential for achieving sustainable economic recovery and long-term prosperity.