Karachi, The SITE Association of Industry (SAI), representing Pakistan's most substantial industrial sector, has formally submitted a series of budget proposals aimed at halting deindustrialization and promoting reindustrialization to boost economic growth. The proposals highlight the importance of the industrial sector, which not only contributes significantly to the nation’s GDP but also shoulders over half of Pakistan's tax burden.

According to S.I.T.E Association of Industry, the proposals were presented to key governmental figures, including the Prime Minister, the Finance Minister, and other officials. SAI President Kamran Arbi emphasized the danger of overtaxing the industrial sector, which he compared to "killing the goose that lays the golden eggs." He advocated for the inclusion of currently untaxed and undertaxed sectors into the tax net to increase the Tax-to-GDP ratio without placing additional burdens on the critical industrial sector.

The proposals set forth by SAI include eight key recommendations spanning fiscal, monetary, trade, and energy policies. These include substantial reductions in direct and indirect taxes on industries, corporate taxation, and taxes on dividends and salaries. SAI also calls for the elimination of unnecessary import restrictions on industrial inputs, a predictable forex regime providing 12 months of forex cover for imports and exports, reduced tariffs on electricity and gas for industries, and lowered lending rates for industrial and export projects to stimulate growth.

Furthermore, SAI’s recommendations for the federal budget suggest focusing on strategic economic management rather than mere numerical adjustments. These include adhering to The Fiscal Responsibility and Debt Limitation Act of 2005, prioritizing national reindustrialization, and ensuring transparency and accountability in public spending.

SAI believes that these budgetary changes would not only prevent further industrial decline but also drive substantial economic growth through increased investment and job creation, ensuring a sustainable economic future for Pakistan.

The post SITE Association Urges Government to Focus on Reindustrialization in Budget Proposals appeared first on Pakistan Business News.