KARACHI: The President of the Korangi Association of Trade and Industry (KATI), Muhammad Ikram Rajput, has called on the government to prioritize industrial growth in forthcoming discussions with the International Monetary Fund (IMF) mission. He emphasized that the talks should extend beyond securing the next loan tranche and address conditions conducive to enhancing industrial activity and export growth.
According to Korangi Association of Trade and Industry, Rajput highlighted the significance of the IMF visit for economic stability but expressed concerns regarding stringent financial conditions that have escalated production costs. Despite a notable reduction in inflation, he pointed out that high interest rates continue to obstruct industrial investment. Rajput advocated for a reduction in the policy rate by at least three percent to alleviate business hardships.
He further underscored the need for corporate tax relief for the documented manufacturing sector, proposing a decrease in the current 29 percent rate to enhance global competitiveness. Rajput also identified high energy tariffs and circular debt as significant challenges for industrial operations. He suggested freezing or reducing electricity and gas prices for industrial consumers to maintain export orders.
Rajput urged the government to broaden the tax base instead of increasing pressure on existing taxpayers, recommending that the Federal Board of Revenue Pakistan (FBR) expand efforts to incorporate new sectors into the tax framework. He emphasized the importance of involving the IMF mission in discussions about major economic measures, particularly in the energy sector and the privatization of state-owned enterprises, to facilitate industrial incentives.
Rajput warned that neglecting industry concerns during the IMF negotiations could result in factory closures, increased unemployment, and slower economic growth. He concluded that sustainable development hinges on centralizing industrial revival in policy discussions.
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