Karachi : The Chairman of National Business Group Pakistan, the President of the Pakistan Businessmen and
Intellectuals Forum, the President of All Karachi Industrial Alliance, the Chairman of the FPCCI Advisory Board,
and the President and former provincial minister, Mian Zahid Hussain, said on Saturday that Prime Minister
Shehbaz Sharif’s decision to reduce ministries, departments, and government jobs is correct.
He said the move would reduce the burden on the national exchequer and resolve many problems.
Mian Zahid Hussain said that the Prime Minister’s acknowledgement of the shortcomings in the tax system
and decision to reduce taxes are also commendable because they will provide relief to the business
community and the public.
Talking to the business community, the veteran business leader said that the government’s decision to
abolish various ministries, merge several ministries and reduce government jobs would improve the system
while reducing the burden on the government, which is why the business community supports it.
Mian Zahid Hussain said that the Prime Minister is well aware that the current tax system is an obstacle to
the country’s development and business. The solution is reforms, lack of human intervention, and
implementation of an e-governance system in all sectors.
The Prime Minister has made it clear that the promises made to the IMF will be fulfilled. When the time
comes, he will say goodbye to the lender and prepare to work with everyone for the sake of economic
development.
The business leader said that the Prime Minister has also said that tax rates will be reduced in the coming
time, which is encouraging as no country can run without taxes. He said that taxes are fundamental to
running any country. Developed countries achieve economic and political stability due to efficient tax
systems.
Mian Zahid Hussain said that due to the size of Pakistan’s economy, taxes worth Rs 4,000 billion are being
underpaid annually. Therefore, due to tax evasion, an increase in the tax base, and corruption, there is a need
to review and reform the entire tax system.
Implementing new taxes and increasing old taxes to obtain loans from the IMF is a link in this chain, which is
not yielding the expected benefits, and achieving the goals of the international financial institution has
become a problem.
The Prime Minister is not only aware of the tax system's inadequacies, but he also wants to remove them so
that the burden of these direct taxes can be reduced.
The Prime Minister has also sought suggestions from traders and industrialists for improving the tax system,
which, if implemented, would greatly improve matters.
Mian Zahid Hussain further said that tax reforms are necessary to increase investment because the outdated
system is a major obstacle to domestic and foreign investment.
For economic recovery, it is necessary to reduce electricity tariffs and bring bank markups to single digits. It is
also very important to improve systems, privatize, and improve laws.
In the current tax system, the salaried class bears the heaviest burden, and the business community is also
not happy, so there is a need to focus on making the tax system acceptable to all stakeholders, he said.
