Karachi – The Pakistan Business Forum (PBF) has called on traders and shopkeepers across the country to fulfill their tax obligations, emphasizing the importance of increased tax collection for long-term economic stability.
In a media briefing, PBF President Khawaja Mehboob ur Rehman urged business owners to play their part in helping the cash-strapped economy recover.
Rehman highlighted that although Pakistan increased its tax revenue by 29 percent last year, the country’s tax-to-GDP ratio remains at a low 8.8 percent. “This is not sustainable at all. No country can thrive with such a low ratio. We need to raise it to at least 15 percent to ensure economic stability,” he remarked.
In addition to taxation, Rehman touched upon key economic indicators, noting that inflation had fallen to single digits in August. He expressed optimism that the State Bank of Pakistan (SBP) would soon follow with a reduction in the policy rate, providing much-needed relief to the economy.
Rehman also underscored the need for export diversification, pointing out that Pakistan’s export base remains narrow, heavily reliant on textiles and a few other sectors. He called for a long-term strategy to promote value-added industries, invest in technology, and enhance trade relations with emerging markets. This, he said, would help reduce the trade deficit and boost foreign exchange reserves.
“Pakistan must attract foreign direct investment (FDI) to fuel economic growth and reduce reliance on external borrowing,” Rehman added. He stressed the need to create an investor-friendly environment through political stability, better infrastructure, and streamlined regulations to draw in foreign investments. “These are long-term measures that Pakistan must take to secure its economic future,” he said.
On the upcoming Shanghai Cooperation Organization (SCO) summit, scheduled to be held in Islamabad in October 2024, Rehman described it as a significant milestone for Pakistan. “Hosting the SCO summit places Pakistan at the center of this important global organization,” he said. He highlighted the SCO’s geopolitical significance, as it encompasses 80 percent of Eurasia and 40 percent of the world’s population.
Founded in 2001 by Russia and China, the SCO is the largest regional organization in the world. Pakistan, which joined as a full member in June 2017 after holding observer status since 2005, is set to take a prominent role in the upcoming summit.
