LAHORE: The Pakistan Business Forum (PBF) has urged the government to cut excessive taxes and high electricity tariffs, warning that current economic policies are strangling business growth, discouraging investment, and eroding competitiveness in both domestic and export markets.
Addressing a press conference in Sargodha, PBF Chief Organiser Chaudhry Ahmad Jawad called for a Charter of Economy to be adopted by Parliament to ensure policy continuity and long-term economic stability. He stressed that businesses are overburdened, with nearly 45 percent of their income absorbed by taxes, making sustainable operations increasingly unviable.
“If you earn Rs100, the government takes Rs45. In such a scenario, running a business is nearly impossible,” Jawad remarked, criticizing the decision to make the 10 percent super tax—originally a temporary measure—a permanent levy. He noted that Pakistan’s corporate tax rate is now among the highest in the region, while countries like the United States and United Kingdom maintain lower rates with better public services.
Expressing concern over the worsening economic indicators, Jawad highlighted that inflation has climbed to nearly 6 percent, the trade deficit has widened to USD 3.5 billion, and the debt-to-GDP ratio has surged to 70 percent, with total national debt exceeding Rs 80.6 trillion. The fiscal deficit has also reached Rs 7.1 trillion, a situation he described as “deeply alarming.”
He further criticized the electricity tariff, currently around 13 cents per unit, the highest in South Asia, compared to 8 cents in India and Bangladesh. Such high rates, he said, are stifling industrial output and hurting exports, both of which are vital to curbing inflation and unemployment.
Jawad emphasized that bureaucracy alone cannot manage the economy, urging the inclusion of private sector experts in policy formulation. He proposed a district-based economic development model to promote local industries and job creation, noting that Sargodha has lagged behind Faisalabad in industrial growth and needs region-specific interventions.
Concluding, Jawad reaffirmed that the PBF will continue advocating for pro-business reforms, while acknowledging positive government initiatives where due. He underscored that Pakistan’s economic revival is impossible without active collaboration with the private sector.
The press conference was attended by senior PBF representatives from Sargodha, Bahawalpur, and Faisalabad, who echoed these calls and demanded urgent policy reforms to safeguard the country’s economic future.
