In order to promote economic revival and business activities, the federal government has decided to give centrality to industry-friendly measures in the upcoming talks with the International Monetary Fund. Top sources in the Ministry of Finance say that the government will seek concessions from the IMF to reduce the increasing burden of taxes and energy so that relief can be provided to local industries.
According to reports, the current tax collection targets and high electricity prices are becoming a major obstacle for the industrial sector, due to which investment and production are being affected. In this context, the government is preparing proposals to reduce power tariff and relax super tax imposed on large companies.
Sources said that various ministries and institutions have been directed to submit their recommendations to the Ministry of Finance within two weeks so that a comprehensive package can be prepared and placed before the IMF. The Ministry of Industries and Production is formulating actionable proposals to reduce industrial costs and improve the production process.
Prime Minister Shehbaz Sharif has also directed the economic team to make the revival of industries the main point of the negotiations because industrial development is the guarantee of employment and increase in exports. Under the government strategy, such measures are being proposed that can provide immediate convenience to the business community.
According to sources in the Ministry of Finance, the IMF leadership has indicated its continued cooperation with Pakistan and the government will inform the fund about its new economic priorities and development plans. Experts say that if it becomes possible to reduce taxes and energy costs, it will not only provide stability to industries but can also improve the overall economy.
