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Business Recorder
5 days ago
- Business
- Business Recorder
LCCI underscores need for a balanced, strategy-driven budget
LAHORE: A balanced and strategy-driven federal budget is essential for Pakistan's economic future, as it can define the country's direction and stabilize a struggling business climate. This was upshot of the speeches delivered by the LCCI Acting President Engineer Khalid Usman, Vice President Shahid Nazir Chaudhry, former LCCI President Muhammad Ali Mian, former Senior Vice President Ali Hussam Asghar and experts from different sectors while speaking at the awareness session on the upcoming Federal Budget 2025-26, organized by the Lahore Chamber of Commerce and Industry. Executive Committee Members Asif Malik, Firdous Nisar, Sheikh Muhammad Fayyaz, Abdul Majeed, Karamat Ali Awan, Syed Hassan Raza, Syed Salman Ali. Ehtsham ul Haq, Rana Muhammad Nisar, Shouban Akhter, former EC members Naeem Hanif, Malik Muhammad Usman, Yousaf Shah and Chaudhry Muhammad Arshad were also present. Speaking at the session, Acting President Engr. Khalid Usman said that the key pillars of the budget should include expansion of the tax net, relief for existing taxpayers, protection of domestic industry, elimination of duties on imported raw materials, growth of GDP and exports meaningful economic reforms. He said that tariffs must be used as a policy tool to protect domestic industries and reduce Pakistan's reliance on imports. He advocated for zero-rating customs duties and sales tax on raw materials to ensure cost-effective industrial production. He also called for targeted incentives and protections for SMEs and the auto sector which are critical for employment and economic resilience. While talking about the government's reported plan to offer electricity at five cents per unit for crypto mining, he questioned why such a competitive rate is not being extended to local industries, which are far more impactful in terms of job creation and economic contribution. He said that LCCI was the first chamber to submit budget proposals to the government. These included recommendations for reducing the cost of doing business, improving the ease of doing business, enabling SME growth using digital technology to minimize human interaction in tax administration. The LCCI also emphasized simplifying regulatory frameworks and promoting deregulation to encourage industrial expansion. Vice President Shahid Nazir Chaudhry said that high operational costs and unpredictable tax policies have discouraged both local and foreign investors. He urged the government to craft a budget that offers long-term predictability, particularly in taxation. He stressed the importance of stakeholder consultation, especially with the business community, before implementing any new tax regime. He said that unless energy costs and policy instability are addressed, Pakistan's manufacturing sector will remain uncompetitive in regional and global markets. He further added that restoring business confidence requires continuity in policy and a fair taxation system that supports genuine businesses instead of penalizing them. Former LCCI President Muhammad Ali Mian talked about tariff rationalization and gave various suggestions. He called for a pro-growth and industry-friendly federal budget that supports macroeconomic stability, promotes investment strengthens the country's industrial backbone. Former LCCI President Ali Hussam Asghar said that Pakistan's export potential remains largely untapped due to inconsistent policy frameworks and lack of facilitation for exporters. He said that enhancing exports is the only sustainable way to address Pakistan's trade deficit and foreign exchange challenges. Reviewing the current fiscal performance, participants said that according to FY 2024–25 budget documents, the FBR was initially tasked with collecting PKR 12,970 billion, later revised down to PKR 12,334 billion. The targets included PKR 5,454 billion from income tax, PKR 4,919 billion from sales tax, PKR 1,591 billion from customs duties PKR 948 billion from federal excise duty. However, in the first eleven months (July 2024 to May 2025), FBR collected only PKR 10.23 trillion, falling short by over PKR 1 trillion. The LCCI also called for an increase in the withholding agent turnover threshold from PKR 100 million to PKR 250 million to reduce the compliance burden on smaller businesses. It stressed the importance of timely issuance of tax refunds to exporters to ease cash flow constraints and encourage reinvestment into business operations. Economic policies, the Chamber said, should be designed with at least a 10-year continuity framework to ensure predictability and stability. The LCCI further demanded the abolition of the 1.8% non-refundable. Copyright Business Recorder, 2025
Express Tribune
16-03-2025
- Business
- Express Tribune
Government to introduce bankruptcy law
Listen to article Special Assistant to the Prime Minister for Industries and Production, Haroon Akhtar Khan, has said the government is introducing a bankruptcy law to facilitate businesses, adding that reviving sick industrial units is a top priority. Speaking at a meeting at the Lahore Chamber of Commerce and Industry (LCCI), Khan stated that take action against the business community without consulting the Chambers of Commerce, as restoring business confidence is crucial for economic growth. He stressed that the business community must be given the freedom to contribute to national development through industrialisation and investment. LCCI President Mian Abuzar Shad, Vice President Shahid Nazir Chaudhry, former President Muhammad Ali Mian, and former Senior Vice President Ali Hassam Asghar also addressed the gathering, with executive committee members present. He pointed out excessive bureaucratic hurdles, noting that 29 departments are involved in regulatory processes, making it difficult for industries to operate efficiently. He highlighted that both Prime Minister Shehbaz Sharif and Deputy Prime Minister Muhammad Ishaq Dar had previously served as LCCI Presidents, strengthening the government's ties with the business community. Recalling past economic successes, Khan said that during Nawaz Sharif's tenure as prime minister in 1993, Indian Prime Minister Manmohan Singh had praised Pakistan's economic reforms. He stressed the need for similar policies and stressed policy continuity, citing China's sustained development through consistent economic strategies. He noted that the markup rate had declined from 22% to 12% and that the stock market was reaching new highs. However, he stressed the need for greater focus on GDP growth and industrialisation. While acknowledging Pakistan's continued engagement with the IMF, he praised the prime minister's success in reducing power rates and expressed optimism that the markup rate would decrease further. He further stated that investors seek safe havens and that PM Sharif is keen to encourage local investors while attracting foreign investments. He proposed an incentive scheme for overseas Pakistanis to repatriate their declared assets worth approximately $30 billion. The LCCI president described recent meetings with the PM as highly productive. He raised concerns about rising business costs due to increasing gas, electricity, and petrol prices. He stressed the need to bring the policy rate into the single-digit range and pointed out that industrial estate land prices, reaching Rs500 million per acre, were hindering expansion. He proposed complete vehicle assembly in Pakistan and local raw material industry development with minimal duties. He called for establishing Export Promotion Sectoral Councils, new Special Economic Zones (SEZs), and a 20-year Industrial Master Plan. LCCI Vice President Shahid Nazir Chaudhry urged the regularisation of industrial clusters and infrastructure development in Quaid-e-Azam Business Park. Former President Muhammad Ali Mian emphasised incorporating LCCI budget proposals into the federal budget, while former Senior Vice President Ali Hassam Asghar highlighted the rice sector's export potential.
