Latest news with #MasoodPervaiz
Express Tribune
26-05-2025
- Business
- Express Tribune
Industrialists urge tax reforms
Shaikhani said that the FBR must shift from coercive tactics to facilitation-based reforms. photo: file Industrialists urged the government to widen its tax network instead of introducing new taxes and discouraging upright taxpayers including businesspeople and the salaried class. They also demanded that the tax collection body and the body introducing new taxes should be two different organisations so that already-registered taxpayers cannot be pressurised. Once the tax collection target is not notched, new taxes are imposed on existing taxpayers instead of bringing new ones into the tax net. On top of that, salaries and privileges of Federal Board of Revenue (FBR) officials should depend on their performance and achievement of tax collection targets. SITE Superhighway Association of Industries (SSHAI) President Masood Pervaiz said the government should focus on capital generation and broadening the taxpayer base to scale up its overall revenue pie rather than increasing taxes on industries and businessmen. It is contradictory that the government imposes new ways to generate taxes from existing taxpayers, who are already contributing to the national exchequer, while increasing its own luxury expenses, including taxes and imported cars. To enhance revenues and export receipts, the government should reduce the overall cost of utilities to make Pakistani products more competitive in the international market, especially considering the country has one of the lowest labour costs in the world. The next budget for 2025-26 should be public-friendly at all costs, and the tax target should be set against the real income of the government rather than an ambitious goal that ultimately burdens taxpayers, he said. The government should focus on promoting industrial and manufacturing sectors to enhance exports, rather than just supporting manpower exports which drain future talent. Hyderabad Chamber of Small Traders & Small Industry (HCSTSI) former president Muhammad Farooq Shaikhani urged the government to make the upcoming federal budget truly reflective of the ground realities faced by the business community, especially SMEs and traders of Hyderabad. He emphasised that the SME sector, which significantly contributes to the national economy, deserves priority treatment through inclusive and growth-driven policies. Shaikhani stated that the FBR must shift from coercive tactics to facilitation-based reforms. Simplified tax procedures, a reduction in turnover taxes, and an end to harassment will boost business confidence. A unified, trader-friendly tax system with digital one-window operations should be introduced to widen the tax net without intimidation. He demanded allocation of funds for establishing new industrial zones in Hyderabad. He pointed out that despite its potential, Hyderabad remains deprived of modern infrastructure. Upgrading industrial areas like SITE with gas, electricity, and roads will encourage investment and job creation. He also called for targeted subsidies on electricity and gas tariffs for industries. He warned that without affordable energy, small industries cannot survive. He stressed that Pakistan's exports require strong support through simplified refund processes, export incentives, and participation in international trade events. Shaikhani also asked the government to include SME financing schemes, revival of sick units, and a one-time amnesty for undocumented businesses. He reiterated that the budget must be business-centric and that the traders of Hyderabad are ready to support the government in economic revivalif their voice is heard and respected. Federal B Areas Association of Trade and Industries (FBATI) spokesperson and eminent industrialist Syed Raza Hussain said the government should introduce business-friendly policies in the next budget to enhance the overall production of industries and exports on a long-term basis. The government should improve the business climate of the country, including reducing the cost of production, promoting ease of doing business, and facilitating industrialists and businessmen with tax incentives and low-markup financing schemes. He mentioned that the government should withdraw tax policies that hurt the trust and confidence of industrialists, which are tantamount to discouraging local and foreign investment in the country, especially at a time when the country is engaged in military conflict with its arch-rival. He said the government should engage all stakeholders in consultations and design a comprehensive mega plan to enhance tax revenues and exports, attract investment, and generate jobs in different manufacturing sectors.
Express Tribune
03-05-2025
- Business
- Express Tribune
Industrialists urge rate cut ahead of MPC meeting
Listen to article Industrialists have appealed to the State Bank of Pakistan (SBP) to immediately cut interest rates to single digits in a bid to stimulate industrial activity and drive economic growth. The current interest rate stands at 12%, while the Monetary Policy Committee (MPC) of the SBP will meet on May 5. Hyderabad Chamber of Small Traders & Small Industry former President Muhammad Farooq Shaikhani said the current 12% interest rate is unsustainable for economic and industrial growth. Previous minor cuts failed to benefit common businessmen or Small and Medium-sized Enterprises (SMEs). He suggested that a minimum 4% reduction is essential to bring it into single digits. Without affordable financing, entrepreneurs cannot invest, expand, or compete. If the government truly aims to stabilise the economy, there is no alternative but to facilitate the business community. Only through empowering industries and promoting exports can Pakistan achieve self-sufficiency. "We demand a cut of at least 4%, bringing the interest rate down to 5%-6%, enabling single-digit financing. This move must practically benefit small traders and industries, which hasn't happened with past reductions. Economic revival is impossible without creating a business-friendly environment. The government must take solid steps to help establish new businesses, boost exports, and support SMEs. Only then can Pakistan move towards sustainable economic growth and self-reliance," he said. SITE Superhighway Association of Industry (SSHAI) President Masood Pervaiz said Pakistan maintains the highest interest rate regime across the region, which made the business case uncompetitive for local industrialists and businessmen. The Monetary Policy Committee (MPC) maintained the status quo at 12% in the last monetary policy on a cautious note, therefore, the policy rate should be drastically reduced to benefit businessmen and investors in the country, he said. He further added that lower interest rates are a win-win for the private sector and the government, as it will attract both local and foreign investment and benefit the government in terms of reducing a huge burden of debt-servicing. Masood urged the government to fully transmit the impact of the policy rate cut to the economyunlike with fuel and utility pricesto restore confidence in the private sector. Federal B Area Association of Trade and Industries (FBATI) President Shaikh Muhammad Tehseen however, pinned hope that the banking regulator will announce a substantial cut in policy rate up to a single digital to promote the investment climate and support export-oriented sectors. He mentioned the country's macroeconomic indicators have witnessed remarkable improvements in recent months, which also reflected the positive GDP growth forecast made by global financial institutions and think tanks. He suggested that the government should leverage the growth trajectory of the economy with favourable business steps for the private sector, by easing off the cost of doing business, including interest rates, utilities, and logistic expenses. Tehseen said the production capacity of the industrial units comprising large-scale to medium and small sizes could be scaled up through a comprehensive facilitation process and special incentive financing scheme for these entities. Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad also echoed the same demand.
Express Tribune
10-03-2025
- Business
- Express Tribune
Industrialists decry MPC decision to keep rate on hold
Reacting to the State Bank of Pakistan (SBP)'s Monetary Policy Committee (MPC) decision on Monday to keep the interest rate unchanged, industrialists expressed disappointment. They said that to turbocharge economic growth, the SBP should have reduced the interest rate to 6% in one go. Site Superhighway Association of Industries President Masood Pervaiz said it is unfortunate that the interest rate was not cut. He noted that the industry is already struggling to survive, and further downsizing is expected after Eidul Fitr. He stressed that a 4% rate cut is essential to stimulate economic growth and investment, especially as inflation is on a downward trend, as claimed by the government and reflected in its economic figures. A balanced reduction would ensure that liquidity flows into productive sectors like industry and exports rather than speculative markets. Supporting businesses with affordable financing would drive expansion, job creation, and overall economic activity while maintaining macroeconomic stability. SITE Association of Industry (SAI) Karachi President Ahmed Azim Alvi also termed the SBP's decision to maintain the policy rate at 12% as disappointing. He urged the SBP to support the government's efforts to promote industries and contribute to the realisation of Prime Minister Shehbaz Sharif's vision. He called on the central bank to gradually reduce the policy rate to a single-digit level so that loans could be accessed at lower rates, enabling faster economic activity. He said the business community had expected a reduction of at least 2%, given the gradual decrease in inflation, but this did not happen, causing concern. He pointed out that the steady decline in inflation and signs of economic improvement should have been considered by the SBP. "The business community has consistently demanded that the interest rate be brought down to single digits, but the MPC does not seem to take our demands seriously," he said. He added that industrial growth is crucial for the country's development and that easy access to loans on favourable terms could set Pakistan on a path to progress. Federation of Pakistan Chambers of Commerce and Industry (FPCCI) President Atif Ikram Sheikh expressed disappointment over the monetary policy, stating that it continues to impose a heavy premium compared to core inflation. He pointed out that, according to the government's own statistics, inflation stood at 1.5% in February 2024, while the policy rate remains at 12%, reflecting a premium of 1,050 basis points. The FPCCI noted that core inflation is expected to remain between 1% and 3% from March to April 2025 and throughout the rest of the fiscal year. Therefore, Sheikh demanded that the key policy rate be reduced to 3%4% by the end of FY25. He added that international oil prices are expected to remain stable, which is a major factor in inflationary pressures. With sufficient oil supply in international and regional markets, along with spare capacity in OPEC+ countries, oil prices are expected to remain in the lower $70s per barrel in the coming months. Expressing concerns over the SBP's stance, business leader Ahmed Chinoy said the MPC's decision to keep the policy rate unchanged suggests a cautious approach, likely aimed at balancing inflation control with economic growth. Pakistan Chemicals & Dyes Merchants Association (PCDMA) Chairman Salim Valimuhammad also rejected the SBP's decision to maintain the interest rate at 12% and demanded a significant reduction. He argued that the SBP's actions contradict ground realities, as economic conditions are improving and inflation is decreasing, yet no substantial rate cut has been made. He urged the government to ensure loans at lower interest rates to promote business and formulate policies that would expedite commercial activities.
