KARACHI: Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has said that imposition of new taxes by the government will further slowdown the economy.
FPCCI President Irfan Iqbal Sheikh in a statement criticized the government for the total lack of consultation in the mini budget with the business, industry and trade community – the real stakeholders of the economy and taxation system; and, the real engines of economic growth, employment creation and revenue generation.
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Had we been consulted, we could have helped the government with a more practical &inoffensive approach to meet the prior actions’ requirements of the IMF, he added.
Sheikh also expressed the collective anxieties and concerns of the business community vis-à-vis new taxes, the increase in electricity and gas tariffs; planned withdrawal of the rightful incentives for the export-oriented industries and further slowing down of the economy through contractionary and recessionary measures.
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He reiterated his stance that if the exports continue to suffer, then there will be no balance of payments; current account will deteriorate waywardly; reserves build-up will remain elusive; revenue target will be missed and employment generation will remain at the lowest. The government must not throw exporters under the bus as they are the real heroes who earn the foreign exchange reserves for the country, he added.
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Sheikh emphasized that only rapid industrialization coupled with aggressive import substitution; incentivizing exports and encouraging remittances have the potential to avert default in the coming years; otherwise, Pakistan will remain on the tenterhooks for ever-looming default for many years to come.
FPCCI Chief explained to the country’s leadership that the business community is the real backbone of any economy as they are the progressive, patriotic, law-abiding and earning hands of the state.
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If you keep the economic, commercial, trade and investment activities afloat in the country, the business community will make it possible for the government to raise the revenue collection to the tune of PKR. 9 trillion in FY24, he assured.
