The Pakistan Business Council (PBC) has highlighted five critical challenges the government must address to maintain the economic stability achieved in 2024.Â
In a statement shared on the social media platform X, the PBC reflected on the country’s economic trajectory and emphasized the need for reforms and prudent fiscal policies.
The council credited the July 2024 IMF agreement with shielding Pakistan from debt vulnerability.Â
It acknowledged the relief brought by lower fuel costs and inflation, alongside benefits like rising remittances, controlled imports, and a fiscal surplus enabled by reduced borrowing costs and SBP dividends.
However, the PBC warned against past patterns where initial stability under IMF programmes was reversed by import-driven growth triggered by monetary and fiscal easing.Â
It stressed the need for urgent reforms, particularly in privatization and government restructuring, while calling for political unity to project strong leadership.
The PBC raised concerns over tax revenue shortfalls, which could increase the burden on existing taxpayers, including salaried individuals.Â
It criticized inefficiencies in the energy sector, citing high costs, unreliable supply, and challenges in availability that hinder manufacturing competitiveness.
The council also pointed to a trust deficit between the government and the private sector, cautioning that extrajudicial actions against Independent Power Producers (IPPs) deter local and foreign investment.
Highlighting potential growth without new capital investment, the PBC said sectors like cement, agriculture, and IT could drive progress without increasing imports.Â
It urged the government to tax agriculture and property, empower local governments, and renegotiate existing trade agreements for better export market access.
The PBC concluded that sustaining stability would require clear leadership, innovative policies, and commitment to reform, warning that repeating past practices would jeopardize progress.
