Aurangzeb tells RCCI delegation: Govt committed to improving investment climate
ISLAMABAD: The Rawalpindi Chamber of Commerce and Industry (RCCI) on Monday urged Finance Minister Muhammad Aurangzeb to ease the soaring cost of doing business through meaningful tax reforms, carry the business community’s concerns to the International Monetary Fund (IMF), and remove structural and contractual enforcement barriers hampering bilateral investment with the United States.
A delegation of RCCI, led by President Usman Shaukat and Group Leader Sohail Altaf, called on the Federal Minister for Finance, Muhammad Aurangzeb, here on Monday and briefed the Finance Minister on RCCI’s recent trade delegation visit to the United States.
Usman Shaukat highlighted the Chamber’s efforts to enhance bilateral trade by facilitating connections between middle-market companies and SMEs of Pakistan and the United States.
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The Finance Minister appreciated RCCI’s proactive role in promoting trade diplomacy and strengthening business-to-business linkages, and assured that the Chamber’s proposals would be incorporated into the upcoming trade policy.
The delegation also raised concerns regarding structural and contractual enforcement issues that are hindering bilateral investment.
The Finance Minister responded that these challenges are being addressed through upcoming policy initiatives, including the proposed Industrial Policy, aimed at improving the overall investment climate.
Altaf conveyed the business community’s serious concerns over the recent increase in petroleum prices, noting that it could trigger a new wave of inflation and place additional burdens on industries and the general public. The delegation expressed particular concern over profiteering by Oil Marketing Companies (OMCs) on existing stock, stating that the recent Rs. 55 per litre increase is among the highest in the region and has severely affected the common man.
In response, the Finance Minister explained that the price adjustment was necessary to prevent depletion of petroleum stocks and to ensure uninterrupted supply across the country. He assured the RCCI that the government would strictly monitor the situation to prevent any undue inventory gains by companies and enforce a minimum 20-day inventory requirement for all OMCs, which may result in inventory losses if prices fluctuate.
The RCCI leadership emphasised the urgent need for a comprehensive package to stimulate the construction sector, noting that revival of construction activity would generate employment and accelerate economic growth. They also stressed that encouraging local investors is essential, as foreign investment typically follows strong domestic investment.
The delegation further highlighted the importance of a conducive and business-friendly environment for promoting investment and industrial growth. Despite higher tax collections, excessive scrutiny and harassment by federal and provincial tax authorities are negatively impacting business confidence and discouraging economic activity.
The RCCI urged the government to adopt austerity measures at the federal level to reduce public expenditures in light of rising costs for the general public. The Finance Minister informed the delegation that a meeting chaired by the Prime Minister was scheduled the same day to deliberate on measures to reduce government spending.
The Chamber also urged the Finance Minister to lower the cost of doing business through tax reforms, convey the business community’s concerns to the International Monetary Fund (IMF), and reduce the excessive burden on existing taxpayers. RCCI recommended recognizing compliant and high tax-paying businesses, broadening the tax base instead of repeatedly taxing the same segment, and offering a 10 percent tax credit to withholding agents to ensure cooperation and efficiency.
The Finance Minister assured that RCCI’s proposals and concerns would be communicated to the IMF and considered in the upcoming federal budget.
The Finance Minister and his team also appreciated the RCCI’s role as a leading chamber of commerce, acknowledging its proactive approach in highlighting key economic issues and providing constructive policy recommendations.
An official statement issued by the Finance Division noted that Aurangzeb highlighted the government’s continued focus on macroeconomic stability, investment facilitation, and energy preparedness during a meeting with the RCCI delegation.
The meeting provided an opportunity for a constructive exchange of views on Pakistan’s economic outlook, the concerns of the business community, and the outcomes of RCCI’s recent business outreach to the United States.
Senator Aurangzeb stated that the government had undertaken difficult but necessary measures over the past period to restore macroeconomic stability and improve the country’s economic fundamentals. He said these steps had helped rebuild confidence among investors and international partners while stabilizing key economic indicators.
Describing these improvements as essential groundwork for future growth, he stressed that the next phase should focus on converting stability into sustained investment, industrial activity, and job creation.
The Finance Minister said the government was committed to improving the overall investment climate and addressing structural issues affecting business confidence.
Referring to the work of the Special Investment Facilitation Council (SIFC), he noted that several initiatives had been launched to streamline approvals, improve regulatory coordination, and facilitate investment in key sectors.
He acknowledged that investor confidence depends not only on macroeconomic indicators but also on predictability, policy continuity, and efficient dispute-resolution mechanisms, adding that the feedback shared by RCCI from its US engagements would be carefully considered.
On taxation and business facilitation, Senator Aurangzeb emphasized the government’s commitment to maintaining close engagement with chambers of commerce and industry representatives. He said that regular dialogue with the business community was essential to ensure that tax policies reflect economic realities and promote growth while ensuring fairness in the system.
The government, he noted, is working to broaden the tax base, improve compliance through digital systems, and enhance transparency in the tax administration while addressing genuine concerns raised by businesses.
The Finance Minister also briefed the delegation on the evolving global oil and energy situation in the context of regional developments. He said the government’s immediate priority had been to ensure an uninterrupted availability of fuel and energy supplies across the country.
He explained that timely price adjustments were necessary to maintain market stability and ensure that supply chains continued to function effectively.
The government, he said, was closely monitoring the availability of petrol, diesel, crude oil, LNG, and LPG while planning to manage supply pressures arising from global uncertainties. He added that energy conservation and prudent consumption measures were also being considered to manage demand while safeguarding economic activity.
Shaukat informed the meeting that the delegation held 14 engagements in Washington, DC, and New York with US lawmakers, senators, economic development organizations, and business chambers.
He described the discussions as positive and encouraging, noting that there was significant interest among US stakeholders in strengthening economic engagement with Pakistan.
Copyright Business Recorder, 2026