AIRLINK 173.15 Increased By ▲ 15.74 (10%)
BOP 10.65 Increased By ▲ 0.28 (2.7%)
CNERGY 8.52 Increased By ▲ 0.20 (2.4%)
CPHL 97.46 Increased By ▲ 4.57 (4.92%)
FCCL 47.25 Increased By ▲ 0.52 (1.11%)
FFL 15.42 Increased By ▲ 0.54 (3.63%)
FLYNG 28.13 Increased By ▲ 1.15 (4.26%)
HUBC 138.91 Increased By ▲ 4.90 (3.66%)
HUMNL 12.81 Increased By ▲ 0.29 (2.32%)
KEL 4.54 Increased By ▲ 0.33 (7.84%)
KOSM 5.55 Increased By ▲ 0.16 (2.97%)
MLCF 62.26 Increased By ▲ 1.38 (2.27%)
OGDC 214.75 Increased By ▲ 6.23 (2.99%)
PACE 5.55 Increased By ▲ 0.15 (2.78%)
PAEL 44.86 Increased By ▲ 4.08 (10%)
PIAHCLA 18.70 Decreased By ▼ -0.10 (-0.53%)
PIBTL 10.74 Increased By ▲ 0.76 (7.62%)
POWER 12.26 Increased By ▲ 0.30 (2.51%)
PPL 173.87 Increased By ▲ 5.10 (3.02%)
PRL 36.22 Increased By ▲ 1.19 (3.4%)
PTC 23.56 Increased By ▲ 0.57 (2.48%)
SEARL 95.31 Increased By ▲ 2.21 (2.37%)
SSGC 39.13 Increased By ▲ 3.56 (10.01%)
SYM 14.02 Increased By ▲ 0.36 (2.64%)
TELE 7.23 Increased By ▲ 0.28 (4.03%)
TPLP 10.29 Increased By ▲ 0.29 (2.9%)
TRG 64.68 Increased By ▲ 4.01 (6.61%)
WAVESAPP 10.04 Increased By ▲ 0.34 (3.51%)
WTL 1.33 Increased By ▲ 0.03 (2.31%)
YOUW 3.70 Increased By ▲ 0.05 (1.37%)
BR100 12,492 Increased By 252.4 (2.06%)
BR30 37,694 Increased By 1300.9 (3.57%)
KSE100 116,189 Increased By 2036.1 (1.78%)
KSE30 35,750 Increased By 549.8 (1.56%)

The Pakistan Business Council (PBC), the country’s leading corporate advocacy platform, highlighted five major issues that must be addressed to ensure the continuity of the newly gained economic stability.

“Notwithstanding the disputed political mandate, regaining economic stability was a notable achievement of the current government in 2024,” the PBC said, in a statement on social media platform X on Thursday, while sharing its perspective on Pakistan’s economic trajectory.

The council highlighted that the inking of a new long-term programme with the International Monetary Fund (IMF) in July “shielded the country from debt vulnerability, while commodity tailwinds, especially in fuel cost and the resulting reduction in inflation provided some relief to the masses”.

PBC said that while the formal sector’s tax burden increased after the budget, its cost of borrowing declined.

MNCs planning to relocate from Pakistan amid Internet disruptions, says PBC

Meanwhile, the country’s current account benefited largely from rising remittances and reduced demand for imports.

“The SBP dividend and lower cost of borrowing enabled the government to record a primary positive balance on the fiscal account and pay down the more expensive debt,” it said.

Looking ahead to 2025, PBC highlighted five major issues requiring redressal.

“Firstly, on four previous occasions, Pakistan’s economy has enjoyed relative stability in the first year of a new IMF program, only to see it reversed as monetary and fiscal easing triggered import-based demand which led to balance of payment crises,” PBC said, advising both the government and business to curb their appetite.

“The second danger is delaying major reforms,” it said. “Not only does the government need the full support of its coalition partners, it has to resolve internal conflict and project a clear and united leadership on privatization and right-sizing of the government.”

“The third concern is failure to meet the tax revenue targets, resulting in further burden on existing taxpayers, including the salaried employees,” PBC noted, adding that the FBR needs to better address its approach to taxpayers.

“The fourth major issue is energy - its cost, availability and reliability. Without these, manufacturing will remain uncompetitive and employment depressed,” it said.

Lastly, the government needs to address the trust deficit it shares with the business community.

“The extrajudicial treatment of Independent Power Producers (IPPs) does not augur well for local or foreign investment, nor for public-private partnerships. The private sector is, after all, the engine of growth,” PBC said.

Moreover, PBC emphasized utilizing existing unutilized capacity in various sectors without needing new capital investment or imports.

It also called for taxing agriculture and property, along with empowering local bodies.

“There is a real potential to build on the stability and this will require unambiguous leadership, strong commitment and room for fresh ideas and people. Repeating the previous practices will not result in radically different results,” it concluded.

Comments

200 characters
KU Jan 02, 2025 03:00pm
Disputed political mandate is the very essence of breaking economy, it provides an ideal opportunity to plunder n celebrate it too. It's a Pakistani story n not going to end well.
thumb_up Recommended (0) reply Reply