Special Assistant to the Prime Minister (SAPM) for Industries & Production Division, Haroon Akhtar Khan, assured the business community of the government’s commitment to protecting the corporate sector from undue harassment by investigative agencies, including NAB, FIA, and FBR.
During a visit to the Karachi Chamber of Commerce & Industry (KCCI), Akhtar announced the creation of a “firewall” to ensure any investigation into corporate entities is vetted by relevant bodies like SECP, SBP, FPCCI, or KCCI.
“We aim to prevent arbitrary actions against legitimate businesses, not to protect wrongdoers but to ensure that honest entrepreneurs are not subjected to harassment,” Akhtar said.
The SAPM also discussed the need for a comprehensive industrial policy to promote export-led industrialization, reduce import dependence, and build foreign exchange reserves. He emphasized the importance of prioritizing domestic investors to strengthen local manufacturing capacity.
He acknowledged the concerns raised by KCCI members and shared the Prime Minister’s vision of transforming Pakistan into the next “Asian Tiger” through industrialization.
Akhtar acknowledged past policy failures that led to the closure of major industries like steel and textile mills but assured that the government is on a recovery path. He pointed to the 10% reduction in the policy rate as an essential step towards economic revival.
Additionally, he highlighted the reduction in electricity tariffs for both domestic and industrial consumers, noting that further reductions in interest rates and rationalization of corporate taxes are expected.
On addressing the challenges faced by struggling businesses, Akhtar revealed plans to introduce a new bankruptcy law to provide legal avenues for business restructuring. He also announced the formation of committees for the revival of sick industrial units. Pakistan is set to develop its first comprehensive industrial policy, with the assistance of an internationally reputed consultant.
The SAPM highlighted that SMEDA would undergo complete restructuring to transform it into a dynamic institution supporting SMEs. He also emphasized plans to ensure that credit facilities extend to not just blue-chip companies but also SMEs and the agricultural sector.
Criticizing the excessive bureaucracy in starting a new business, Akhtar noted that the system requires up to 350 certifications, many of which are provincial, and urged simplification. On the issue of capital flight, he announced the formation of a committee to investigate why Pakistanis hesitate to retain or bring back wealth.
Addressing the issue of taxation, Akhtar acknowledged challenges posed by international lending agencies like the IMF but assured that meaningful steps would be taken over the next two years to reduce burdens and promote economic activity. He also discussed plans to engage with the US to negotiate trade terms, particularly in light of tariffs.
Business community leaders at the meeting raised concerns about high taxation and revenue targets.
Chairman of the Businessmen Group (BMG) Zubair Motiwala criticized the imposition of a super tax and the shifting of exporters from the Final Tax Regime to the Normal Tax Regime, which he argued created a climate of uncertainty. He also criticized the practice of seizing bank accounts without due process, which disrupts business operations.
Motiwala suggested that Pakistan needs to adopt more business-friendly policies similar to those in the Gulf region, including fixed utility rates and tax breaks for Special Economic Zones, to attract industrial investment. He also recommended a comparative analysis of Pakistan’s cost of doing business against regional competitors like Bangladesh and India.
Earlier, KCCI President Muhammad Jawed Bilwani welcomed SAPM Akhtar and highlighted the challenges faced by businesses due to high costs, particularly excessive taxation. Bilwani noted that many businessmen and industrialists have relocated their operations abroad due to these challenges, leading to an outflow of capital from Pakistan.
