- The country cannot afford rapid economic growth despite stability: Langrial.
- Tabba calls for native growth, not importation.
- ARIF HABIB CONDITIONS The approach of the country “defensive” to economic growth.
While Pakistan short of money travels a delicate path to the recovery, the president of the Federal Bureau of Return (FBR), Rashid Mahmood Langrial, underlined Sunday that the government was to go towards economic growth “cautiously and gradually” , admitting the need to modify the fiscal structure in an increasingly high increase “tax rate.
“If the growth pressure did not calibrate in the right way, it will deteriorate … Such an understanding is present among society and the decision -makers that we must head towards growth with caution,” said Langrial who with those responsible of the sector and an economist engaged in a frank conversation on economic challenges during Geo News Special transmission entitled: “Aakhri Mauqa: Pakistan Kay Liye Kar Dalo.”
Pakistan, currently reinforced by the extensive funding of 7 billion dollars of the International Monetary Fund (IMF) obtained in September 2024, sailed in a delicate path to the recovery.
The South Asian nation has narrowly avoided a defect in sovereign debt, with reserves not sufficient to respond to a month of imports controlled in 2023.
Its savings increased by 0.92% in the first quarter of the financial year. Pakistan seeks to generate income by accelerating a privatization thrust, but the efforts to privatize the national flag carrier, the international airlines of Pakistan and the outsourcing of the capital’s airport fell flat.
In this context, Geo News organized an “Aakhri Mauqa” program with estimated experts and representatives of the government of the country participating in the discussion, entitled “Pakistan Kay Liye Kar Dalo”.
Eminent discussion participants include Arif Habib, president of the ARIF Habib group, CEO of Lucky Cement Muhammad Ali Tabba, CEO of Topline Securities Muhammad Sohail and the CEO of Pakistan Business Council Ehsan Malik.
The program was organized by the journalist and principal analyst Shahzeb Khanzada, renowned for his daring analyzes and based on the facts.
During today’s special transmission, Langrial noted that the country could not afford rapid economic growth despite stability. “The country feels pressure when we maintain stability for two to three years as household revenues is assigned,” he added.
He said that decision -making in the next year, from February 2025 to February 2026, would be a crucial year for the country, because the authorities would decide whether “we must evolve with the previous trajectory or a new one”.
Asked about the difference in opinion in the government in this regard, the FBR chief said that there was no difference in evolving towards economic growth but the pace. “It is easy for the government to set a very high growth target, but its consequences will affect society,” he added.
He also rejected the concept of poor people who do not get help despite a significant reduction in inflation, saying that “inflation is a” inflation tax “”. “When you have stopped taking people’s tax, you have stopped reducing their purchasing power,” he added.
Langrial noted that the country witnessed the first signs of growth in a certain number of sectors, stressing: “We must remain firmly … We must stay on the route.”
‘Tax structure’
Meanwhile, Muhammad Ali Tabba – CEO Lucky Cement – supported the Declaration of the FBR chief of the trip “carefully and gradually” to economic growth, claiming that it should be “inclusive and lasting”.
“If we achieve a growth of 6 to 7% on the basis of 6 to 7 billion dollars, it would be harmful … We, once again after six months, must slow down the economy and devalue our currency to recover it” , he said.
Referring to inflation, the businessman noted that he was even higher compared to previous years, highlighting the need to assess supply constraints to slow down the prices of the necessary elements and increase the affordability.
“We have to stimulate indigenous growth … We don’t want import -based growth, and we cannot afford it.”
In addition, Tabba said, there are sectors in Pakistan, in which industries exist but on a very small scale, highlighting the need to move the country’s attention to areas such as shipping and shipping industries and aviation.
He regretted “excessive taxation” in establishing a maritime transport industry in Pakistan, noting that the government cannot attract new industries with high tax rates. “We must focus on the development of new areas, which also include the data center, the IT industry, which would also increase employment and export services,” he added.
Concessionaire with Tabba’s opinions, the president of the FBR admitted that the country’s tax structure needed reforms.
According to Langrial, the corporate tax rate in Pakistan, which is around 39%, was slightly higher compared to neighboring countries, including India, which has around 30%.
Likewise, he said, the country’s import taxes, because the total tax ratio was higher by around 32% in the total turnover of last year. In addition, Langrial said that employees at a certain level are also faced with excessive taxation, adding that the government also understands and realizes this issue.
“We are in an obligation … those who are affluent do not pay taxes,” he said, noting that the country has around 1.5 billion of rupees to Rs1.7 Billion of tax species with The 5% of the highest households who do not pay tax on their income.
He also underlined the lack of development of the capacity in the FBR to generate tax revenue in the “good and good way”. “If we examine the 2008 tax report from 2008 to 2024, we are the same.
Langrial said efforts were made to develop capacity and reduce the weight of the tax. “Various measures are taken to modify the behavior of taxpayers … We also provide great power incentives and technology in the FBR to improve the capacities of authority.”
Meanwhile, ARIF Habib called for the “defensive” country approach to economic growth, stressing the need to analyze the sectors that would not increase the deficit in the current account.
Citing examples of construction and agriculture sectors, he called on the government to exploit “areas under use” which, according to him, contain export potential, benefit the national treasure and increase tax collection .
He underlined the need to analyze the sector to economic growth rather than focus on the collective approach.