LAHORE: Pakistan Peoples Party (PPP) Chairperson Bilawal Bhutto-Zardari has criticised the approach of the current and previous governments, saying they had attempted to run the tax system through pressure, raids and punitive measures -- an approach he argued was neither sustainable nor productive.
“If tax rates are aligned with the region and the business community is treated with respect, the tax net will expand and collections will increase. You cannot run a tax system through force or intimidation,” he said.
Addressing traders and industrialists at a meeting organised by the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in Lahore on Tuesday, Bilawal said the business community had always played a decisive role in Pakistan’s economic progress and maintained a historic bond with the PPP.
He thanked the FPCCI for presenting its proposals and expressed full willingness to work on them. To pull the economy out of persistent crises, Bilawal said both the federal and provincial governments would need to assume greater responsibility.
Bilawal noted that Sindh had outperformed the federal government in the collection of sales tax on services. He proposed a structural solution to address federal fiscal challenges: “If the federation hands over sales tax provinces and assigns them clear targets, the provinces can deliver better results.” He added that if a province failed to meet its target, deductions could be made from its share—while provinces exceeding their targets should receive additional funds.
On electricity pricing, Bilawal reaffirmed his party’s commitment to supporting low-income households. “Instead of subsidising up to 200 units, extend it to 300 units and promote solar energy solutions across the country,” he said, emphasizing that many least-cost power generation projects in the national grid were initiated under the PPP governments.
Bilawal assured traders and industrialists that the PPP would work with them to improve economic conditions and conveyed readiness to take all business-related grievances to the federal government. “If the business community can set aside differences and stand united, politicians can also come together on one page. We are ready to resolve your issues in collaboration with the government.”
He reiterated that the China-Pakistan Economic Corridor (CPEC) remained a “game changer” and stressed the need to fully capitalise on the benefits of its early phases. He also acknowledged challenges faced in Sindh’s economic zones and said these would be resolved in coordination with the federal government.
Earlier, in his welcome address FPCCI President Atif Ikram Sheikh pointed to severe pressures on the economy, noting that exports remain stuck at $32 billion, while rising debt, unequal electricity and gas tariffs, heavy taxation and a high cost of doing business were forcing capital out of the country. “Investment is moving out of Pakistan. Dubai alone has registered over 8,000 Pakistani companies. We need competitive energy tariffs, lower mark-ups and a fair tax regime to keep industries alive,” he said.
United Business Group (UBG) Patron-in-Chief SM Tanveer said the business community was now fully united. “Our sole focus is electricity. The government is taking Rs131 billion in subsidies from industry and giving it to electricity companies. Globally, governments support industry, not the other way around.” He said 140 textile units had already shut down, with more closing daily.
Faizan Bangash adds: Talking to the bureau chiefs and senior anchors of various TV news channels at a dinner hosted by the PPP chairman at the Governor House, Lahore, Bilawal said “two constitutional amendments from one parliament are enough, there is no room for more.”
Responding to different questions, the former foreign minister said the Constitution was not a document that can be changed repeatedly. When asked by a journalist whether he will become the prime minister in the current circumstances, Bilawal covered his ears. “If the people vote, I will become the prime minister.”
The PPP chairman said they will not take ministries in Punjab. Speaking about the issue of creating new provinces, he said the resolution passed by the Punjab Assembly should be followed first to create a province. “The Senate commission had declared that South Punjab should be made a province. First, follow the consensus to make South Punjab a province, then move forward.” When a journalist asked whether he wants the division of Punjab, Bilawal said the Punjab Assembly had spoken about the resolution, adding he cannot even think of dividing Punjab.
On a query that there was talk of banning Pakistan Tehreek-e-Insaf (PTI), Bilawal said reconciliation was the best way to move forward in politics. “Better conditions should be created. There is no personal difference with Imran Khan. His method is wrong. There will be reconciliation, everyone will have to be one so that they can move towards political stability. If we remain in such an environment where we cannot talk to each other and then the conditions in one province deteriorate, there will be problems. Their government has failed in the province where PTI is responsible.” He further said the Punjab chief minister was doing a good job.
