KARACHI: Chairman of National Business Group Pakistan, President of Pakistan Businessmen and Intellectuals Forum, President of All Karachi Industrial Alliance, Chairman of the FPCCI Advisory Board Mian Zahid Hussain has said that Prime Minister Shehbaz Sharif’s decision to reduce ministries, departments, and government jobs is correct.
He said the move would reduce the burden on the national exchequer and resolve many problems. He said that the Prime Minister’s acknowledgement of the shortcomings in the tax system and decision to reduce taxes are also commendable because they will provide relief to the business community and the public.
He said that the government’s decision to abolish various ministries, merge several ministries and reduce government jobs would improve the system while reducing the burden on the government, which is why the business community supports it.
Mian Zahid said that the Prime Minister is well aware that the current tax system is an obstacle to the country’s development and business. The solution is reforms, lack of human intervention, and implementation of an e-governance system in all sectors.
He said that due to the size of Pakistan’s economy, taxes worth Rs 4,000 billion are being underpaid annually. Due to tax evasion, an increase in the tax base, and corruption, there is a need to review and reform the entire tax system. Implementing new taxes and increasing old taxes to obtain loans from the IMF is a link in this chain, which is not yielding the expected benefits.
He further said that tax reforms are necessary to increase investment because the outdated system is a major obstacle to domestic and foreign investment.
For economic recovery, it is necessary to reduce electricity tariffs and bring bank mark-ups to single digits. It is also very important to improve systems, privatize, and improve laws.
In the current tax system, the salaried class bears the heaviest burden, and the business community is also not happy, so there is a need to focus on making the tax system acceptable to all stakeholders, he said.
Copyright Business Recorder, 2025
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