Experts Propose Policy Reforms For Economic Revival

ISLAMABAD, (UrduPoint / Pakistan Point News - 28th Apr, 2024) Amidst economic challenges, top businessmen in the country and economic experts on Sunday proposed actionable measures aimed at stimulating economic activity and fostering investment.

In a live broadcast on a private news channel, Chairman of Arif Habib Group, Arif Habib, said that a super tax was imposed on the people who were already paying the taxes. He suggested that the prime minister cut down the super tax by half.

Habib said Pakistan has the highest energy costs, interest rates and tax rates in the entire region. “Who will invest in such a situation?” he questioned.

Meanwhile, Arif Habib suggested that there shouldn’t be a wealth tax in Pakistan or the people would move abroad.

He said that taxes cannot be collected by increasing the tax rate.

Instead, economic activity will have to be increased, he added.

On the occasion, economist Syed Ali Hasnain said that discussion regarding imposing taxes wasn’t new and added that taxation was the most regressive in Pakistan.

Topline Securities CEO Mohammad Sohail said that there were leakages in the industries’ taxes.

“The global organizations are also saying that Pakistan’s tax-to-GDP ratio is low,” he said.

Mohammad Sohail said that the government had data regarding non-tax payers, but the problem was implementation.

“Rs3000 billion to Rs4000 billion of tax can be collected through the use of force,” he suggested.

Lucky Cement Chief Executive Officer (CEO) Muhammad Ali Tabba said that Pakistan’s tax-to-GDP ratio is 9%, but other countries in the region have 15% to 18%.