Chairman Businessmen Panel (BMP) of Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Anjum Nisar has said that the upcoming government should give priority to the economic recovery, emphasizing the necessity of joint efforts to tackle Pakistan’s economic difficulties. Chairman a meeting here on Sunday, he expressed confidence in the country’s ability to overcome the prevailing challenges and emphasized that the new government should fulfill the commitment to eradicate poverty and unemployment.
Mian Anjum Nisar said that the upcoming government should remain steadfast in its commitment to guide Pakistan through its current economic and political challenges, with a focus on unity, effective governance, and public welfare. He said that the country has had trouble raising enough money to cover its expenses. Due to the low tax-to-GDP ratio, borrowing and outside help are heavily relied upon to close the fiscal imbalance. In Pakistan, there was a recurring budget deficit because the government spends more than it takes in. The national debt burden has risen, as a result, needing substantial financial resources for debt repayment.
The business leader said, “Both internal and external debt in Pakistan has been constantly rising. The budget is largely consumed by debt servicing; leaving little money for social welfare and development initiatives. Circular debt, which is the accumulation of unpaid invoices and pending payments among power generation firms, distribution companies, and the government, is a problem in Pakistan’s energy sector. This problem has a significant negative impact on the power sector’s finances and hinders its ability to meet the rising energy demand.”
He said that other troubling issues also exist, posing obstacles to our economy’s expansion. Pakistan was ranked 173rd internationally for tax payments. According to a World Bank analysis, Pakistani businesspeople pay 47 taxes yearly, compared to those of Hong Kong, the United Arab Emirates, Ireland, Malaysia, Sri Lanka, and India, which are the countries with whom Pakistan must compete. The chairman BMP said that a single business that conducts business in four different Pakistani provinces annually disburses five corporate income taxes, twelve employer-paid pension contributions, twelve Social Security payments.—INP
