Prospects for strong industrial growth remain constrained under the current IMF programme, as fiscal consolidation and revenue generation continue to be key priorities.
The OICCI notes that the corporate sector, representing only 6pc of GDP, accounts for nearly 60-70pc of direct tax revenues, while retailers remain under taxed.
Market contractions stall investment activity, with industry representatives saying no significant new investment has occurred since the FED was introduced.
Locally sourced produce often suffers from inconsistent quality, uncertain supply, and daily price fluctuations, creating significant operational uncertainty for processors.
Attempting to extract more taxes from an already stressed private sector is likely to generate frustration and resentment rather than meaningful additional revenues.
Shift even a tenth of the Rs54tr domestic stock out of banks and into retail hands at a yield just 150 basis points cheaper, and the annual saving runs into the region of Rs80bn.
Our external trade imbalance is rooted in the very structure of the economy, which relies excessively on borrowing and remittances and fails to address structural issues.
