KARACHI: United Business Group (UBG) Patron-in-Chief SM Tanveer has said excessive taxation imposed by the government has forced the closure of more than 80 industries linked to the housing and construction sectors.
He said the distinction between filers and non-filers, along with taxes under Sections 236C and 7E and other levies, had severely damaged the construction industry and undermined the investment climate.
He expressed these views while addressing a meeting during a visit to the ABAD House led by UBG President Zubair F Tufail. The delegation also included former FPCCI Senior Vice President and UBG Southern Region Secretary General Muhammad Hanif Gohar, along with other UBG leaders.
SM Tanveer said businesses could not grow merely by keeping money in banks, stressing that investment and industrial activity were essential for economic growth. He added that the UBG had established an economic think tank to prepare recommendations for the upcoming federal budget.
He said growth in the construction sector translates into broader economic growth, as more than 70 industries are linked to it. Referring to property taxation, he said the global average property tax was around four percent, while in Pakistan people had been burdened through various advance taxes.
He questioned why the housing sector was penalised because of rising oil prices triggered by the Russia-Ukraine war.SM Tanveer expressed hope that Sections 236C and 7E, along with other controversial taxes, would be abolished in the upcoming budget. He noted that the Federal Excise Duty (FED) had already been withdrawn and capital flight to Dubai had slowed, which he described as a positive sign for the economy.
He said he remained optimistic that economic conditions would improve after the budget, adding that Pakistan had strong growth potential, particularly given Karachi’s economic importance.
He further said UBG needed fresh thinking and that bringing younger people into leadership roles was the need of the hour. Referring to a recent court ruling, he welcomed the removal of restrictions on converting residential plots into commercial properties, saying the decision would help restore investor confidence.
Praising Chief of Army Staff Field Marshal Asim Munir for his interest in economic matters, SM Tanveer said that after helping avert conflict between Iran and the United States, he would now focus fully on Pakistan’s economic development.
Speaking on the occasion, ABAD Chairperson Muhammad Hassan Bakhshi said improving the judicial system was essential and called for legislation to ensure court cases are resolved within three months.
He said noticeable improvement had been seen after the appointment of a private-sector chairman at the Lahore Development Authority and suggested that the Karachi Development Authority should also be headed by someone from the private sector.
Bakhshi said he had written to the field marshal, asking him to assess whether governance and performance in Karachi had improved. He added that if shortcomings existed within the bureaucracy, political leadership or their own ranks, they were prepared to face accountability.
He further said some Sindh government institutions should be handed over to the private sector, arguing that business conditions in Punjab were far better than in Sindh, while Karachi continued to feel neglected.
He said ABAD wanted to serve the public and the construction sector without seeking special favours. At the end of the ceremony, tribute was paid to SM Tanveer for his services to the business community.
