KARACHI: The economic and business environment has reached a point where the business community seeks the imposition of an “economic emergency” justifiable to put an end to the uncertainty, President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Irfan Iqbal Sheikh said on Monday.

He also expressed his willingness to engage with the government in a consultative process to take on the economic challenges collectively in the broader national interest. He reiterated his stance that policies should not be announced in a vacuum without consulting the business, industry, and trade community.

Additionally, he has called for a pro-business Federal Budget FY23 that enables the private sector to invest in the economy, set up new industries, increase exports at an expedited rate, generate employment, and contribute towards revenue collection in a healthy manner.

In a statement, he emphasised that the policy rate must be aggressively brought down to seven per cent from 12.25pc to make access to finance affordable for the private sector and keep economic activity afloat. The step would bring down the short-term debt servicing of the government by Rs300 billion and provide breathing space to the government for better fiscal management.

The FPCCI chief proposed a simplification of personal income tax slabs to five to seven from the current 11 slabs. Interestingly, the IMF has also recommended the same and can add up to Rs200bn to the tax collection in a couple of years.

Published in Dawn, April 26th, 2022