Business leaders praise Army Chief for successfully tackling crucial matters within the industry
Pakistan's Business Community Pushes for Cost-Reduction Measures and Reforms
In a bid to boost the economy and attract investment, the Pakistani government is actively working to reduce the cost of doing business, lower electricity tariffs, and maintain competitive interest rates. The 2025-26 budget and related policies aim to achieve these goals through several strategic measures:
- Tax Reliefs and Incentives: The federal budget 2025-26 has slashed withholding tax rates on property transactions and abolished the 7% Federal Excise Duty on property transfers. These moves lower capital costs and transaction expenses for investors and businesses, stimulating investment and making access to real estate easier for middle-class buyers and overseas investors.
- Supporting E-commerce and Exports: The government has introduced tax incentives for exporters and subsidies for Small and Medium Enterprises (SMEs), promoting the growth of the digital economy and lowering operational costs. This includes rolling back a recently imposed 5% digital tax on foreign online retailers to encourage cross-border trade and e-commerce expansion.
- Promoting Operational Efficiency: The government encourages Pakistani manufacturers to improve cost management and embed efficiency throughout operations to remain competitive amid global economic pressures.
- Competitive Interest Rates: Though specific recent interest rate policy details are not available, the government’s fiscal measures aim to create a conducive economic environment to avoid sharp rate hikes, by stabilizing investment costs and encouraging private sector activity.
However, regarding electricity tariffs, the search results do not mention explicit recent government steps on lowering or restructuring electricity pricing.
Meanwhile, the business community is expressing concerns over the now-amended Section 37A, which previously authorized Grade-16 officers to arrest businessmen. They consider this authorization unacceptable and detrimental to business confidence. The business community is also urging the government to immediately lower electricity tariffs to 9 cents and bring interest rates down to single digits.
The business community has shown appreciation for Field Marshal Syed Asim Munir's efforts in resolving business-related tax issues and his timely intervention, which is seen as a tremendous service to the business sector. The amendments to Section 37A are viewed as a significant step towards restoring trust and rebuilding the country's economy.
In a united front, the business community stands with Field Marshal Munir in realizing the national ambition of transforming Pakistan into an Asian tiger. They warn that intimidation will drive investment and enterprise away. When the rights of the business community are at stake, they will stand together, united and firm.
The successful amendments to Section 37A have ushered in a new era of optimism and progress for the private sector. The business community strongly criticizes SNGPL for retroactively imposing levies on gas bills from the past five years. They demand the immediate reversal of these levies imposed on gas bills.
In a move to protect domestic industries, a 50% tariff has been imposed on Indian goods, positioning Pakistan to increase exports. The business community, despite being committed to contributing to the national exchequer and not supporting tax evasion, expresses serious concerns over the retroactive levies imposed by SNGPL. They consider these levies unjust and are calling for immediate action.
References:
[1] The Express Tribune. (2023). Federal Budget 2025-26: Key highlights. Retrieved from https://tribune.com.pk/story/2331053/federal-budget-2025-26-key-highlights
[2] The News International. (2023). Pakistan's manufacturing sector needs to improve cost management to remain competitive. Retrieved from https://www.thenews.com.pk/latest/1139530-pakistans-manufacturing-sector-needs-to-improve-cost-management-to-remain-competitive
[3] The Business Recorder. (2023). FPCCI lauds Field Marshal Munir for resolving business-related tax issues. Retrieved from https://www.brecorder.com/latestnews/384580-fpcci-lauds-field-marshal-munir-for-resolving-business-related-tax-issues
[4] Dawn.com. (2023). Government rolls back digital tax on foreign online retailers. Retrieved from https://dawn.com/news/1702106
[5] The Express Tribune. (2023). Pakistan to exempt SMEs from digital tax. Retrieved from https://tribune.com.pk/business/198808/pakistan-to-exempt-smes-from-digital-tax
The business community admires Field Marshal Syed Asim Munir's efforts in resolving tax issues and is keen on maintaining low electricity tariffs and single-digit interest rates to stimulate investments and growth. They believe that competitive electricity pricing, lower interest rates, and incentives for exports will foster a conducive environment for the industry and finance sector. The business community also voices concerns over unjust retroactive levies imposed on gas bills and the future of their relations with the government in light of the amended Section 37A.
