Latest news with #PakistanBusinessmenandIntellectualsForum
Business Recorder
01-08-2025
- Business
- Business Recorder
Business community leader assails ‘unpredictable' tax policies'
KARACHI: The Chairman of the National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of the All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain has said that the business community is currently upset by unpredictable and inconsistent tax policies, which are discouraging both domestic and foreign investment. If the government truly wants meaningful economic recovery, it must urgently take steps to expand the economic base and tax net, reduce production costs, and ensure that the tax burden is shared fairly among all citizens. Otherwise, the ongoing crisis will only get worse. He stated that the pace of tax reforms is still disappointing. He explained that resistance to the digital economy is adding to the growing tax burden on the poor, making their lives harder. He pointed out that current economic policies are worsening unemployment and poverty nationwide. Mian Zahid Hussain said that strict fiscal and monetary policies have heavily impacted industrial activity, job opportunities, and consumers' purchasing power. According to the World Bank, Pakistan's poverty rate has hit 40.5 percent, with unemployment at around 22 percent, revealing the real challenges behind ongoing reforms. He highlighted that 75 to 80 percent of the Federal Board of Revenue's (FBR) revenue comes from withholding taxes, which are technically indirect taxes. These taxes place a disproportionate burden on salaried and middle-income groups already struggling with inflation, high electricity costs, and rising interest rates. He added that the business and industrial communities harbour strong concerns over the powers granted to FBR officers under the Finance Bill 2025. Mian Zahid Hussain warned that, in pursuit of the Rs 14,300 billion tax target, the government must not jeopardize the country's Rs 123,000 billion economy. Instead, efforts should focus on expanding the overall economic base, which would naturally increase tax revenues. He stressed that genuine tax reform is not about further burdening current taxpayers but about expanding the tax base. Without including the country's large informal economy in the tax system, achieving the 13% tax-to-GDP ratio sustainably is unlikely. For long-term progress, Mian Zahid Hussain stressed the crucial need for transparency, fairness, and accountability to be incorporated into the tax system. Copyright Business Recorder, 2025
Business Recorder
25-07-2025
- Business
- Business Recorder
Economic challenges: Focus on root causes and sustainable steps urged
KARACHI: The Chairman of the National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain said the real solution to Pakistan's economic challenges lies in addressing rootcauses and implementing long-term measures. Relying on temporary measures that may mask underlying economic vulnerabilities is not a sustainable path to long-term prosperity. He stated that dollar scarcity suggests that some fundamental economic problems remain unchanged; therefore, the government should focus on enhancing productive capacity, diversifying exports, and increasing investment. Long-term solutions are crucial for sustainable economic growth. Although Pakistan is currently under an IMF program and its respect and dignity have increased globally, there is no significant foreign investment visible in the domestic economy. The real solution lies in increasing exports and competitiveness. Without export expansion, the surplus does not represent genuine economic progress. This emphasis on the need for export expansion is crucial for enhancing Pakistan's global economic standing. He emphasized that the recent achievement of a current account surplus comes at a crucial time for Pakistan, as the country seeks to demonstrate economic resilience while managing external debt obligations and working toward sustainable fiscal stability. He said that the historic increase in remittances from overseas Pakistanis is welcome, which resulted in Pakistan's current account surplus of $2.1 billion in fiscal year 2025. He congratulated the Prime Minister and Finance Minister on this achievement, which came 14 years after the previous one; however, he warned that this improvement is temporary and should not be considered an indication of sustainable economic stability. He noted that according to the State Bank, remittances have pushed foreign exchange reserves to $14.5 billion. Mian Zahid Hussain emphasized that remittances from overseas Pakistanis are a blessing. However, these cannot substitute for reforms and productive capacity, and relying on them could prove dangerous. He emphasized the urgency of converting the $29 billion trade deficit into a surplus. With exports stagnating at the $32 billion level, Pakistan is among the weakest countries in global competitiveness. The current account deficit has decreased due to discouraging imports of goods; however, this has adversely affected the local industry, which relies on importing raw materials and components. The strategy of import discouragement has impacted production, increased unemployment, and affected exporters' global competitiveness. He emphasized the need for long-term measures to address economic challenges. He termed the repeated reliance on loan rollovers from China, Saudi Arabia, and UAE, along with import controls, as an unstable strategy. Copyright Business Recorder, 2025
Business Recorder
22-07-2025
- Business
- Business Recorder
RIAT 2025: PAF's success represents strategic, economic victory: Mian Zahid
KARACHI: The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain said that the Pakistan Air Force's dual triumph at the Royal International Air Tattoo (RIAT) 2025 represents a multi-faceted strategic and economic victory for Pakistan. He said that the "Spirit of the Meet" award for the JF-17C Block III underscores Pakistan's advanced indigenous defense capabilities and its ability to produce highly competitive 4.5-generation fighter jets at an affordable cost, a critical factor for many international buyers. Simultaneously, the "Concours d'Elegance" award for the C-130H Hercules highlights the PAF's exceptional standards of maintenance and professionalism across its fleet, validating the nation's Maintenance, Repair, and Overhaul (MRO) expertise as a valuable service export. He said that these accolades collectively enhance Pakistan's global standing, projecting an image of a technologically advanced and professionally capable nation, thereby challenging pre-existing negative international perceptions. This improved national brand is instrumental in attracting foreign direct investment, as evidenced by the Special Investment Facilitation Council's efforts and recent FDI trends, he added. Furthermore, he said, the success at RIAT is expected to significantly boost the export prospects of the JF-17 Thunder, as demonstrated by the landmark $4.6 billion deal with Azerbaijan, positioning Pakistan as a key player in the global defense market. While Pakistan continues to manage substantial defense expenditures within a challenging fiscal environment, strategic achievements like the RIAT awards offer significant long-term economic and diplomatic dividends. They not only contribute directly to the growth and diversification of the aerospace industry through exports and MRO services but also indirectly stimulate tourism and broader economic engagement by fostering greater international confidence and understanding. This success reinforces Pakistan's position on the global stage as a nation capable of achieving excellence in advanced technological domains. Copyright Business Recorder, 2025
Business Recorder
05-07-2025
- Business
- Business Recorder
Mian Zahid slams increase in oil and gas prices
KARACHI: The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain, said that the recent increase in oil and gas prices is intensifying hardship for both the public and the business community. He stated that the new taxes introduced in the budget, along with the energy price hikes, could prove detrimental to Pakistan's economy and its people. Mian Zahid Hussain noted that despite relative stability in global crude markets following the recent conflict between Iran and Israel, the substantial increase in domestic fuel prices raises serious concerns. He said that the government has chosen energy prices as a soft target to raise revenue and has increased the petroleum levy. This, he argued, is unjustified when international crude prices have fallen from $85 per barrel last month to around $65 now. Providing expensive fuel to the public is a flawed decision, he added, as it will simultaneously fuel inflation; raise production costs, and damage industry and household budgets alike. Mian Zahid emphasised that the petroleum levy hike was done under the IMF directives. Instead of curbing gas theft and line losses, the government has shifted the burden onto industrial, commercial, and residential users. He warned that while this policy might generate immediate revenue, it will slow down long-term economic growth. Across the world, governments are either subsidising energy or maintaining price stability to curb inflation and revive industries. In contrast, Pakistan is witnessing simultaneous increases in the cost of essential goods, production, and transportation, which is worsening economic pressures. He pointed out that India has not raised oil prices in over a year, and Bangladesh has reduced the prices of petrol, diesel, high-octane, and kerosene multiple times. Mian Zahid stressed that instead of raising energy prices, urgent and immediate reforms are needed. Circular debt has surpassed Rs 2.7 trillion, electricity theft exceeds 17 per cent, and line losses are far above regional averages. Without addressing these systemic issues, any increase in prices will offer only temporary relief while also encouraging more theft and non-payment. The government, he urged, must base its decisions on global trends, consumer affordability, and industrial challenges. If energy prices are hiked solely to reduce the fiscal deficit, it will lead to rising poverty, unemployment, and business closures. He called on the government to adopt transparency, consultation, and realism in policymaking. Copyright Business Recorder, 2025
Business Recorder
02-07-2025
- Politics
- Business Recorder
Military and diplomatic: ‘India under intense mental stress after facing repeated failures'
KARACHI: The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board, Mian Zahid Hussain, said that Indian PM Narendra Modi and his team is under intense mental stress after facing repeated military and diplomatic failures. He stated that the collapse of India's false narrative, it's deteriorating internal political situation, serious human rights violations, and atrocities against minorities, including the Kashmiri Muslims and Dalits, have drawn open criticism from several European nations and international human rights organizations, further damaging India's global standing. He said that the Modi government, in an attempt to garner cheap popularity and divert global attention from internal crises such as the farmers' movement and rising inflation, is preparing for another attack on Pakistan. A new false flag operation could be staged to justify this aggression. According to a recent UN report, more than 3,600 political arrests were made in India in 2024, highlighting the severity of its internal conditions. Mian Zahid Hussain warned that if India launches another attack on Pakistan, the response will be so severe that the world will forget the Israel-Iran and Russia-Ukraine conflicts. He said that attempts to increase ratings without capability will cost both Modi and India dearly. He emphasized that the morale and training of Pakistan's armed forces are not only high but, according to the 2023 Global Firepower Report, Pakistan's military ranks as the ninth-largest and one of the most organized in the world. Mian Zahid Hussain added that the recent speech by Field Marshal Syed Asim Munir has made it clear that Pakistan is at a decisive stage in its war against terrorism, and India aims to sabotage this progress. In recent years, India has attempted two military incursions, both of which were repelled entirely by Pakistan, which proved Pakistan's military capability and caused significant international embarrassment for India. He further stated that global powers must not remain silent. If India turns South Asia into a battlefield, the consequences will be felt worldwide, affecting not only humanitarian but also economic and geopolitical aspects. South Asia houses 25 percent of the world's population, and a conflict between two nuclear powers in this region would pose an unimaginable threat to global peace. He demanded that the Kashmir dispute be resolved immediately, and violations of the Indus Waters Treaty must be stopped, as lasting peace can only be achieved through a just political solution. He said that the recent 18 percent increase in Pakistan's defense budget is a clear indication that we are not willing to compromise on our security. Copyright Business Recorder, 2025
