Lahore, August 28, 2024:
Governor Khyber Pakhtunkhwa Faisal Karim Kundi has said that Pakistan is a country rich in potential and resources and urged all segments to work together for the Pakistan's development and prosperity.
He was speaking at the Lahore Chamber of Commerce and Industry. LCCI President Kashif Anwar presented the address of welcome and highlighted various issues including industry, economy, Independent Power Producers (IPPs) and tourism etc. Senior Vice President Zafar Mahmood Chaudhry, Executive Committee Member Fareeha Younus and other distinguished members were also present.
Governor KPK said that the situation in Punjab is relatively better while Khyber Pakhtunkhwa is suffering from 16 to 18 hours of load shedding. He said that that after Tarbela no major dams have been constructed. He suggested that if KPK, which produces the cheapest electricity, is given even half of its production, the province's load shedding issue could be resolved.
LCCI President Kashif Anwar said that running businesses has become exceedingly difficult. The industry is grappling with challenges such as currency depreciation, rising tariffs for electricity, gas and fuel, high-interest rates, and numerous other issues that are escalating the cost of doing business. He said that continuity in policies is essential for business stability.
Governor Kundi agreed with Kashif Anwar that a robust tax net is crucial for national development. He shared his experience from a recent visit to Dushanbe, where investors questioned whether Pakistan could offer the same facilities they receive in Tajikistan such as electricity at 2 cents per unit.
Addressing the issue of Afghan transit trade, Governor KPK acknowledged the importance of maintaining good relations with Afghanistan as it serves as Pakistan’s gateway to Central Asia.
Kashif Anwar underscored the need to reduce expenses to stabilize the economy, particularly focusing on revising agreements with IPPs to prevent the nation from incurring unnecessary costs. He stressed that these agreements are a burden on the taxpayers and should be renegotiated or terminated in the national interest.
He highlighted KP's vast potential in tourism and the need for better facilities, such as security and accommodations to attract tourists. Anwar also mentioned the immense potential in the gems and jewelry sector, which could generate significant foreign exchange if value addition is prioritized.
Governor KP acknowledged the challenges faced by KP, including inflation, economic issues, and terrorism. He highlighted the need for vocational training and support for the youth to improve the province’s soft image and promote peace.
LCCI President criticized the Federal Board of Revenue (FBR) for the burdensome SROs that have increased the difficulties for existing taxpayers. He called for measures to control inflation, which is driving unemployment and affecting the law and order situation in the country. He also raised concerns about industries relocating abroad and the increasing brain drain due to a lack of facilities in Pakistan.
Kashif Anwar emphasized the importance of broadening the tax base and urged the government to encourage existing taxpayers by reducing their burdens and creating a more business-friendly environment. He mentioned that LCCI has declared the first year of his presidency as the "Business Facilitation Year" and is actively holding awareness sessions and seminars on tax issues.
He also stressed the need for import substitution, stating that industries must be provided with affordable electricity and gas to reduce production costs, which is crucial for boosting exports. Anwar highlighted the potential of the IT sector in generating foreign exchange and called for policies that support the growth of this sector.
Furthermore, Anwar called for an end to smuggling and transit trade issues, which are harming the economy, and urged political parties to sign the Charter of Economy immediately. He acknowledged the sacrifices of security forces in maintaining peace and emphasized the need for continuity in economic policies.
The LCCI President concluded by stating that the business community's sole focus is on sustaining their businesses, and their loyalty lies with the nation's economy, regardless of political affiliations. He also pointed out that while the Pakistan People’s Party's manifesto centers on providing food, clothing, and shelter, these basic necessities have become increasingly difficult for the average Pakistani to obtain in the current economic climate.