SCCI President Proposes Fiscal Reforms for KP Development

The President of the Sarhad Chamber of Commerce and Industry (SCCI) has presented key proposals for the upcoming fiscal year 2024-25, focusing on the need for comprehensive reform measures to enhance the current tax base. Emphasizing the significance of Khyber Pakhtunkhwa (KP) as a major exporter of electricity and gas, he raised concerns about the unfair charging of the same rates to KP as other provinces.

One of the notable suggestions put forward by the SCCI President is the establishment of an oil refinery in KP to make use of its surplus oil reserves, given that the region contributes 42% of the country's total oil production. Additionally, he called for the revival of the Industrial Development Bank of Pakistan (IDBP) to offer favorable loans and support industrial growth in KP.

Addressing the importance of investing in human resources, the SCCI President proposed a specialized technical training program to harness the potential of the workforce in KP. At a recent conference in Islamabad, he highlighted KP's electricity production capacity of 6500 megawatts and urged the government to attract Chinese investors to explore a potential $100 billion export opportunity, which could lead to industrial growth, economic development, and job creation in KP.

Focusing on the power sector, the President stressed the need to tackle inefficiencies to reduce electricity costs, including addressing issues like line losses and theft. He also expressed concerns about the increasing interest payments on loans and recommended a review of Independent Power Producers (IPPs) to tackle economic challenges effectively.

The SCCI President advocated for a fair distribution of tax revenue based on the population of each province to broaden the tax base. He highlighted the existing revenue disparities between KP and Islamabad in terms of vehicle registration and taxes, calling for a more equitable system to ensure balanced economic growth across regions.