By Commerce Reporter
LAHORE, December 13 — Federal Finance Minister Senator Muhammad Aurangzeb, while addressing the All Pakistan Chambers Conference, said that continuous and meaningful dialogue between the government and the business community is essential, as engagement limited only to the budget does not provide sustainable solutions.
He said that very positive and constructive discussions have taken place between the federation and the provinces on the NFC Award, resulting in the formation of eight working groups, with progress expected by January 15. He added that SBP has recieved USD 1.2 billion after the approval of the IMF programme and invited the private sector to participate in the privatization of PIA.
He was speaking at the All Pakistan Chambers Conference organized by the Lahore Chamber of Commerce and Industry (LCCI).
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Addressing the conference, LCCI President Faheem Ur Rehman Saigol said that the cost of doing business in Pakistan has reached an unbearable level, creating an urgent need for relief for industry. He said that a high policy rate and expensive electricity and gas are forcing industries to relocate abroad. He stressed that IPP agreements must be subjected to a forensic audit and electricity tariffs should be brought at par with regional countries.
The LCCI President emphasized that non-filers should be incentivized and brought into the tax net, while existing taxpayers should be facilitated. He called for a simple and transparent tax system and the abolition of unnecessary withholding taxes. He said that Pakistan is facing a growing trade deficit and that exports must be promoted by facilitating exporters, restoring the Final Tax Regime and ensuring timely payment of duty refunds.
Faheem Ur Rehman Saigol pointed out that annual losses of around Rs 850 billion by state-owned enterprises have become a major burden on the economy, making immediate privatization essential. He added that investment in the country is at a 25-year low and stressed the need to promote domestic investment. He also called for collateral-free and cash-flow-based financing for SMEs to create jobs and boost exports.
Finance Minister Muhammad Aurangzeb clarified that the IMF diagnostic and corruption report was the result of a transparency process initiated by the government itself and did not target any specific government. He said an action plan is being prepared to address the structural weaknesses identified in the report. He termed remittances the backbone of the economy and said efforts are underway to develop the local bond market and deregulate commodity markets. He added that PASCO will be abolished and strategic reserves will be maintained through the private sector.
The finance minister said the Tax Policy Office has been separated from the FBR and placed under the Finance Division to ensure long-term and stable policymaking. He acknowledged that the formal sector and salaried class are under pressure and said action is being taken against non-compliant sectors. He emphasized that only the private sector can drive economic growth, while the government’s role is to provide a conducive business environment.
He further said that large-scale manufacturing has grown by 4 percent, IT exports have crossed USD 4 billion, and remittances are expected to reach USD 41–42 billion. He also mentioned steps related to PIA privatization, crypto, blockchain and the digital economy, and proposed the establishment of a research cell at the Lahore Chamber. He reaffirmed the government’s commitment to SOE privatization, tariff reforms and export-led growth, and assured continuous engagement with the private sector.
Speaking on the occasion, SAARC Chamber Vice President Mian Anjum Nisar said that extremely high electricity prices are a fundamental issue. He said Pakistan’s exports have stagnated at around USD 30–35 billion, while countries that were once far behind have moved ahead. He noted that electricity prices in the region range between 7 to 9 cents, while in Pakistan they have risen to around 12.5 cents, and that regional interest rates are between 3 to 6 percent compared to 11 percent in Pakistan.
Senior Vice President LCCI Tanveer Ahmed Sheikh said that the FIR culture against traders must end, adding that if local investors do not feel secure, attracting foreign investment will be very difficult.
Presidents of the Chamber of Chaman, Quetta and Sarhad emphasized on thew opening of border trade as the closure is hurting thier exports to central asian states.
