PBC Urges Long-Term Reforms for Pakistan's Economic Stability

The Pakistan Business Council (PBC) has raised concerns over the short-term, quantitative targets set by previous International Monetary Fund (IMF) programmes, emphasizing the need for a shift towards long-term qualitative impact on reform agendas. PBC Chief Executive Ehsan Malik highlighted the detrimental effects of front-loaded targets on tax revenue and energy circular debt control, urging for sustainable progress measures instead of burdening existing taxpayers. Malik proposed innovative taxation strategies to broaden the tax base, relieve overtaxed sectors, and attract investment while aligning fiscal policies with industrial growth.

Furthermore, the PBC emphasized the importance of restructuring the Federal Board of Revenue (FBR) with advanced technology and talent infusion to promote fair and broad taxation. The council criticized the short-term tariff-led approach for making the productive sector less competitive in exports, leading to negative impacts on the external account. Malik suggested moving away from this approach and engaging the IMF to support a more sustainable fiscal policy.

In conclusion, the PBC's recommendations aim to enhance Pakistan's economic stability by advocating for long-term planning, equitable taxation, and strategic alignment of fiscal policies with industrial and investment goals. By addressing these key issues, Pakistan can work towards a more sustainable and prosperous economic future.