The Pakistan Business Council’s (PBC) tax proposals for the upcoming budget look to save jobs in the manufacturing & formal services sectors and to lay the groundwork for a sustained economic recovery driven not by imports but by exports and domestic manufacturing.
The PBC said that its recommendations for FY25 budget have been prepared in the backdrop of Pakistan’s economy facing a major crisis, import curbs which were put in place to manage the current account deficit have severely impacted the manufacturing sector.
It said that high interest rates and a deliberate “demand destruction” policy aimed at taming inflation which is at the highest level in the last 50 years, have led to closure of many manufacturing units and unemployment. As a result, large sections of the population are finding it hard to make ends meet.
PBC said whilst it appreciates that the country is facing possibly its worst crisis since independence, it also looks at the current economic environment as an opportunity to bring about the major structural changes that the economy needs. These include increasing the tax base, reducing government expenditures and ensuring that general subsidies currently being offered are targeted towards those who need them the most.
The advocacy body has divided its proposals for the upcoming budget into 5 main areas that include
- Broadening the Tax Base & Providing a Level Playing Field for Domestic Manufacturing
- Promoting Industrialization / Growth / Job Creation
- Consolidation of Businesses for Scale to Improve Competitiveness
- Reducing the Cost of Doing Business in Pakistan
- Helping Pakistan Meet its Commitments to the UN Sustainable Development Goals and to meet the challenges of climate change.
