Irfan Iqbal Sheikh, the President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has expressed his concerns about the government’s lack of consultation with the business community regarding the upcoming federal budget for 2023-24.
With less than a month remaining until the budget announcement on June 9th, Sheikh has invited Ishaq Dar, the federal minister for finance and revenue, to meet with the leaders of Pakistan’s business, industry, and trade community.
READ MORE: Foreign investors urge Pakistan to simplify withholding tax regime
The purpose of the meeting is to discuss their proposals, address issues and concerns, and present recommended solutions related to various sectors such as industrial, trade, shipping, transportation, taxation, SMEs, agriculture, IT, ITeS, monetary and fiscal policies.
Sheikh also expressed shock at the International Monetary Fund (IMF) for raising the external funding requirement from $6 to $8 billion without any valid reason. He criticized the IMF’s approach, stating that friendly countries have promised up to $5 billion in funding or roll-overs to Pakistan, and Pakistan was close to fulfilling the last condition of $1 billion relaxation, but the IMF’s decision is unfair and unethical.
READ MORE: OICCI proposes increase in salaried tax exempt income threshold
Sheikh called on the international community to take notice of this matter. He questioned the IMF’s actions, pointing out that the Extended Fund Facility (EFF) program was valid only until June 2023, yet they have suddenly increased the funding requirement for the next seven months without justification. Sheikh believes this undermines the budget-making process of a country with a population of 230.1 million.
Sheikh emphasized that the government’s economic and financial team needs to understand that the IMF program is not going to materialize before the upcoming budget, which is only three weeks away. He urged the government to prepare the budget accordingly and make necessary adjustments within this short period. Sheikh believes that the solution to Pakistan’s crisis lies in indigenous efforts based on several principles.
READ MORE: PBC terms super tax as penalty on documented sector
These include simplifying and broadening the tax base, providing targeted subsidies to export-oriented sectors, encouraging remittances, incentivizing industrialization and export substitution, involving real stakeholders in economic policy-making, and ensuring political parties sign a national economic agenda and plan for the next 15 years to protect economic policies from political interference.
In summary, Irfan Iqbal Sheikh, as President of FPCCI, is urging the government to engage in meaningful consultation with the business community, address the concerns regarding the IMF’s funding requirements, and implement indigenous solutions to overcome Pakistan’s economic challenges.
READ MORE: PBC proposes exemption of capital gains tax on shares with 10-year holding period
