Pakistan Business Forum’s Chief Organizer Chaudhry Ahmed Jawad and Karachi President Malik Khuda Bakhsh have said that government taxes and electricity tariffs should be reduced, as increasing exports will reduce unemployment and set the country on the path of development.
Meeting with the business community on Wednesday, Chaudhry Ahmed Jawad and Karachi President Malik Khuda Bakhsh stated that corporate tax rates of up to 45 percent are making it “impossible” to run a business, and demanded an immediate reduction in government revenues and rising electricity tariffs to save the country’s struggling economy.
During a meeting with the business community yesterday, PBF representatives said that the country’s economy is in crisis and a “Charter of Economy” from the parliament is needed to get it back on track.
Chief Organizer Chaudhry Ahmed Jawad described the tax burden as the highest in the region, saying that a supposedly temporary 10 percent super tax has been made permanent. He stressed, “If we earn 100 rupees, the government takes 45; it is impossible to run a business like this,” comparing this rate to the 21 percent charged in the United States and 25 percent in the United Kingdom, where, according to him, better public facilities are also provided.
The forum also condemned the 13 cents per unit electricity tariff in the country as the highest in the region, pointing out that competitors in India and Bangladesh pay only 8 cents per unit. They argued that this difference is severely affecting Pakistan’s exports and industrial competitiveness.
Karachi President Malik Khuda Bakhsh criticized the exclusion of trade experts from financial planning. He said, “Bureaucracy cannot run the economy; the business community must be involved in policy-making.” Bakhsh proposed promoting industry at the district level to establish local economies and create employment opportunities.
Jawad further criticized the practice of successive governments taking on more debt and called for the creation of long-term economic policies spanning 20-25 years in consultation with experts from all sectors. He emphasized that economic recovery is not possible without empowering the private sector through competitive rates.
Regarding the currency’s value, Jawad claimed that the actual value of the dollar is between 240 to 250 rupees, which is much lower than its current market rate of 285. He maintained that bringing the national currency to its “real rate” would significantly reduce inflation, directly benefiting both traders and the general public.
The PBF leaders expressed their resolve to continue raising their voice against the government’s harmful policies, but they would also appreciate constructive measures, and urged the administration to take the business community into confidence and solve their genuine problems.