Govt urged to ease the tax burden
Karachi's business community on Thursday urged the government to slash policy rates and a reduction in taxes in the upcoming 2025-26 budget.
A pivotal online meeting in this regard took place between Haroon Akhtar Khan, Special Assistant to the Prime Minister, and the Karachi Chamber of Commerce and Industry (KCCI) through Zoom. The meeting aimed to address several pressing issues concerning Karachi's industrial sector, including electricity supply, water provisions, rising gas levies, tax collection problems, and the challenges faced by exporters.
During the meeting, the business community said that they were facing higher electricity rates and even higher taxes which should be reduced to ensure a competitive business environment. They also raised the issue of undue interference by Federal Board of Revenue (FBR) officials. They commented that FBR officials were key hurdles in their business and were allegedly involved in the harassment of the business community. They called for action to be taken against the FBR.
During the discussion, Khan emphasised the formation of committees to tackle these issues, with the Karachi Chamber of Commerce playing a significant role in these initiatives. The committees were set up following the Prime Minister's directives to ensure a focused and systematic approach to resolving the concerns of local chambers and industrialists. "The goal is to resolve all the issues that are hindering the growth of our industries," said Haroon Akhtar Khan.
In line with the Prime Minister's vision, Khan reiterated the urgency of boosting industrial growth across Pakistan. He highlighted that the ongoing tariff war presents a unique opportunity for Pakistani industries to compete globally. "The Prime Minister has directed us to revive local industries and significantly enhance exports," he added.
A significant update came from the Special Assistant, who reported that due to the Prime Minister's efforts, the policy rate has been reduced to 11%, a move expected to ease the financial burden on businesses. However, Shawal Malik from KCCI pointed out a critical challengethe aging and deteriorating electricity infrastructure in Karachi, which is leading to increased production costs for local businesses. Despite these challenges, PM's Special Assistant reassured the Karachi Chamber of Commerce and Industry that the government is fully committed to resolving these issues and supporting Karachi's industrial sector.