KARACHI: Pakistan Business Forum (Sindh Region) President and Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh has said that the government’s economic measures are beginning to restore confidence among businesses and the public, while calling for deeper fiscal and administrative reforms to sustain economic stability.
In a statement issued on August 18, Khuda Bakhsh said measures taken under the leadership of Prime Minister Shehbaz Sharif and Field Marshal Syed Asim Munir to improve economic management, national security and administrative affairs had contributed to greater confidence in the country.
He said the government had continued its reform process despite challenging economic conditions, but stressed that fundamental changes in Pakistan’s fiscal and administrative systems were necessary to make the measures more effective.
Business leader calls for fiscal reforms
Khuda Bakhsh said there should be a clear division of responsibilities between the federal and provincial governments regarding tax collection, public expenditure and resource distribution.
He proposed that the next phase of the National Finance Commission (NFC) process should go beyond simply deciding how resources are distributed and should also review the fiscal powers and responsibilities of the federal and provincial governments.
According to him, the federal government should bear expenditure only in areas falling within its constitutional responsibilities, while provinces should assume greater responsibility for financial planning, revenue generation and efficient spending within their respective jurisdictions.
Calls for simpler and unified tax system
The Pakistan Business Forum leader also called for a simpler, transparent and business-friendly tax system.
He said unnecessary complexities in federal and provincial taxation should be reduced and digital records across government departments should be integrated.
A more uniform and convenient tax system, he added, could reduce the burden on taxpayers dealing with multiple government departments.
Khuda Bakhsh further proposed incentives for institutions and provinces that demonstrate stronger tax-collection performance.
He welcomed government efforts to document the economy and broaden the tax base, but said the reforms would be more effective if traders and industrialists were consulted more closely during the process.
Energy costs, exports remain key concerns
Khuda Bakhsh said Pakistan’s growing population and economic requirements made administrative reforms increasingly important.
He urged the government to focus alongside economic reforms on facilitating businesses, reducing energy costs, increasing industrial production and expanding exports.
Lower operating costs and stronger industrial activity, he said, would be important for improving Pakistan’s investment environment and creating more employment opportunities.
Public-private coordination urged
The business leader said stronger coordination between the government and private sector was necessary to sustain economic reforms.
He expressed hope that the government would maintain continuity in its existing policies and incorporate recommendations from the business community into budgetary, fiscal and administrative reforms.
According to Khuda Bakhsh, greater policy continuity and stronger private-sector participation could help increase investment, employment and overall economic activity.
He also welcomed what he described as the government’s efforts toward economic stability and national security, saying sustained reforms and effective coordination could help create a stronger economic foundation for Pakistan.