PESHAWAR: The leadership of the Pakistan Business Forum (PBF) has expressed serious concerns over the federal budget and the economic challenges facing Pakistan’s business, industrial and agricultural sectors, calling for immediate reforms to boost economic growth and restore business confidence.
Addressing a press conference at the Peshawar Press Club, PBF chief organizer Ahmed Jawad, Khyber Pakhtunkhwa chairman Ashfaq Paracha, Peshawar Region president Arif Yousaf and other officials praised the leadership of Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir, particularly their governance approach and diplomatic efforts aimed at promoting peace, stability and regional harmony.
However, the forum criticised the federal budget, saying it failed to provide meaningful relief to the industrial and agricultural sectors. Ahmed Jawad said Pakistan needs at least 6 percent annual economic growth to overcome its economic difficulties, but the budget lacks a clear strategy to achieve this target.
The PBF leadership said Pakistan’s economy requires the creation of at least three million new jobs every year, but the current financial framework does not provide a clear roadmap for employment generation.
Referring to the Economic Survey, Ahmed Jawad said more than 72 million people in Pakistan are living on monthly incomes of less than Rs8,000. He questioned what real relief had been provided to ordinary citizens in the budget apart from the imposition of additional taxes.
The PBF office-bearers expressed concern that tax collection has continued to increase every year while average economic growth remains limited to around 3 percent. It argued that sustainable growth is not possible without reducing the cost of doing business and increasing industrial production.
They also criticised high energy prices and questioned how Pakistan could increase exports with the current electricity and gas tariffs.The forum members said that the cost of doing business in Khyber Pakhtunkhwa is approximately 34 percent higher compared to other parts of the country, affecting the competitiveness of businesses operating in the province.
Discussing financial issues, the forum members said nearly 43 percent of the federal budget for the upcoming fiscal year would be spent on debt servicing, while sufficient measures have not been taken to reduce the debt burden.
They welcomed the government’s decision to amend the super tax, stating that the tax was originally introduced as a temporary measure for one year.The business body demanded the abolition of the petroleum levy and proposed replacing it with an 18 percent General Sales Tax (GST) on petroleum products to provide relief to consumers. It also called for the removal of GST on milk and dairy products and urged the government to launch a national program to increase domestic production of edible oil, which remains one of Pakistan’s major import expenses after petroleum products.
On tax policy, Ahmed Jawad demanded the withdrawal of recent amendments related to late filing of tax returns under the Active Taxpayers List (ATL). He said such measures discourage new taxpayers and weaken public confidence in the tax system.
Khyber Pakhtunkhwa Chairman Ashfaq Paracha said the province’s business community has become one of the biggest victims of the current political and economic environment. He called for the replacement of the Khyber Pakhtunkhwa finance adviser, arguing that the position should be given to a local representative who understands the province’s economic realities, business environment and development priorities.
