By Commerce Reporter
LAHORE: The Lahore Chamber of Commerce and Industry (LCCI) has simultaneously welcomed the Federal Board of Revenue’s (FBR) recently introduced safeguards to prevent the misuse of tax-exempt goods meant for Gilgit-Baltistan, while also noting that the marginal appreciation of the Pakistani rupee against the US dollar reflects improving market confidence and short-term stability.
Senior Vice President LCCI Tanveer Ahmed Sheikh, in a statement, said that currency stability remains critical for economic planning, import costing, export competitiveness and investor decision-making — particularly at a time when manufacturers, traders and exporters have faced prolonged volatility.
He noted that the slight upward movement of the rupee, attributed to disciplined oversight in the interbank market, controlled demand for foreign exchange and improved liquidity management, is a positive short-term indicator. However, he emphasized that durable currency strength requires long-term economic reforms and cannot rely solely on administrative measures.
“Structural reforms, export-led growth, expansion of industrial productivity and consistent inflows through trade, investment and remittances are essential to translating currency stability into real economic recovery,” he said.
Turning to tax enforcement, the SVP LCCI welcomed the FBR’s clarification and monitoring mechanism regarding tax-exempt goods intended solely for Gilgit-Baltistan, calling the move timely and balanced. He said that while G-B rightfully enjoys exemptions due to its constitutional status, there have been persistent concerns about diversion of tax-free commodities into other markets, causing distortions and unfair competition.
According to him, the new measures — including trader-wise quota allocation, automated tracking through Pakistan Customs’ WebOC system, restrictions on movement of exempt goods outside G-B and strict penalties for violations — will help curb misuse and protect legitimate businesses.
Tanveer Ahmed Sheikh stated that the business community supports reforms that promote transparency, documentation and fair taxation, provided they are implemented in consultation with stakeholders. He urged FBR to continue close coordination with chambers and trade bodies to ensure operational challenges are addressed.
The LCCI reaffirmed that strong economic fundamentals, predictable policies and continued engagement with the private sector are necessary to achieve macroeconomic stability, spur industrial growth, boost employment and strengthen business confidence across Pakistan.
