By Commerce Reporter
LAHORE: Prime Minister Mian Muhammad Shehbaz Sharif held a consultative meeting with presidents of chambers of commerce and industry at the Prime Minister House, Islamabad, to seek recommendations from the business community on the upcoming Federal Budget and the overall economic situation of the country.
President of the Lahore Chamber of Commerce and Industry Faheem Ur Rehman Saigol presented a number of proposals aimed at improving the business environment, boosting exports and supporting industrial growth.
The LCCI President strongly urged the government to abolish the Punjab Infrastructure Development Cess, stating that the levy has significantly increased the cost of doing business and adversely affected export-oriented industries. He said that the business community had worked hard to secure relief from similar taxes and levies in the Sindh province, but the imposition of the cess in Punjab is undermining the competitiveness of Pakistani exports and creating an additional burden on industry.
Responding to the concern, Prime Minister Shehbaz Sharif informed the participants that the matter has already been taken up and is under consideration.
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Faheem ur Rehman Saigol also raised concerns over restrictions imposed on business operating hours in the name of energy conservation. He said that the early closure of markets, restaurants and commercial centers is negatively affecting business activity, employment and economic growth. He urged the government to further extend the relaxation in business timings and eventually withdraw such restrictions altogether.
The LCCI President emphasized that the upcoming federal budget should be based on an export-led growth strategy. He said that all fiscal, trade and industrial policies should focus on increasing exports, attracting investment, encouraging industrialization and improving Pakistan’s competitiveness in international markets.
Faheem ur Rehman Saigol stressed that consistency and continuity of economic policies are essential for economic recovery and sustainable growth. He said that investors and businesses require a stable and predictable policy environment to make long-term investment decisions and contribute effectively to economic development.
The LCCI President also highlighted the negative impact of frequent Statutory Regulatory Orders (SROs) and abrupt policy changes. He said that repeated amendments to tax, trade and regulatory frameworks create uncertainty in the business community, disrupt planning and increase compliance costs. He urged the government to ensure policy stability and avoid unnecessary regulatory interventions.
Highlighting another major national challenge, Faheem ur Rehman Saigol underscored the urgent need for the construction of additional water reservoirs and storage facilities across the country. He said that Pakistan loses a substantial quantity of precious water every year due to inadequate storage capacity while the agricultural sector faces increasing water shortages. He added that water reservoirs are vital for agricultural productivity, food security and mitigating the adverse impacts of climate change.
The LCCI President also highlighted the high Cost of Doing Business (CODB) in Pakistan, stating that rising energy tariffs, taxation, financing costs and regulatory burdens are making local industries less competitive. He called for comprehensive measures to reduce production costs and facilitate industrial expansion.
Faheem ur Rehman Saigol further pointed out the disparity between duties and taxes on commercial imports and industrial imports, urging the government to remove this imbalance. He said that industries importing raw materials, machinery and inputs for value addition should be facilitated through a fair and supportive import regime to promote manufacturing and exports.
Prime Minister Shehbaz Sharif appreciated the constructive recommendations put forward by the business community and assured the participants that their proposals would be given due consideration in the formulation of the upcoming federal budget. He reiterated the government’s commitment to maintaining close consultation with chambers of commerce and industry to ensure sustainable economic growth and improved business confidence.
The Lahore Chamber of Commerce and Industry expressed hope that the forthcoming budget would incorporate practical measures to enhance exports, reduce the cost of doing business, ensure policy stability and create a more business-friendly environment across the country.
