Islamabad, Dr. Shahid Rasheed Butt, former President of the Islamabad Chamber of Commerce and Industry (ICCI), has identified the recent boom in the stock market as a positive indication of Pakistan's economic stability. He emphasized the need for strategic focus on key sectors to enhance this stability.
According to Islamabad Chamber of Commerce and Industry, Dr. Butt underscored the importance of prioritizing the tax, energy, and agricultural sectors to accelerate economic stability. He advocated for the implementation of incentives and a reduction in government expenditure and taxes on the industrial sector. Conversely, he suggested increasing taxes on agricultural income and the wholesale, retail, and real estate sectors to boost the economy.
Dr. Butt recommended the sale of loss-making government institutions, advocating for a tax system that increases the burden on the wealthy while easing it for the poor, as crucial steps for an economic turnaround. He acknowledged the government's efforts in controlling smuggling, speculation, and other illicit businesses, noting their positive impact on the economy.
However, Dr. Butt expressed concern over the rising activities of the fertilizer mafia, highlighting their detrimental effect on millions of farmers and the country's food security, and called for urgent action against them.
To further improve the economy, Dr. Butt emphasized the need to increase foreign investment and remittances, which would bolster foreign exchange reserves and alleviate debt repayment challenges. He noted the interest of countries like Saudi Arabia, UAE, China, and Qatar in investing in Pakistan's agriculture, refinery, and mineral projects, and stressed the necessity for authorities to remove investment bottlenecks.
Dr. Butt also commented on the Federal Board of Revenue's (FBR) efforts to expand the tax net and prevent tax evasion, urging an increased focus on targeting the elite who benefit significantly from the current system. He criticized the reluctance of governments to reduce these benefits and pointed out the improbability of the elite contributing to increasing the tax-to-GDP ratio unless they directly face a system collapse or crisis.
Concluding his statement, Dr. Butt emphasized that controlling the non-taxpaying elite is essential for resolving Pakistan's problems and deemed the current situation a test of the country's leadership vision.
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