IMF programme no excuse to squeeze businesses, public through budget, says PBF

The Pakistan Business Forum (PBF) has urged the government not to use the International Monetary Fund (IMF) programme as a justification for imposing additional taxes on businesses and the public in the upcoming budget, arguing that revenue should be raised by broadening the tax base and bringing under-taxed sectors into the formal economy rather than increasing the burden on compliant taxpayers.

PBF Chief Organiser Ahmad Jawad said Pakistan's economic growth has remained around 3% on average over the past four years, highlighting the need for policies that encourage investment, industrial production and job creation.

"The decision to enter the IMF programme was the government's own choice. However, the IMF does not require governments to place an additional burden on the business community and the public every year. If the economy is to move forward, meaningful relief measures must be introduced," Jawad said.

He warned that raising taxes on documented businesses could further weaken economic activity and discourage investment at a time when growth remains fragile.

According to Jawad, Pakistan's cost of doing business is approximately 34% higher than that of many regional competitors, reducing the competitiveness of domestic industries in international markets.

He cited a written submission by the Ministry of Commerce to the National Assembly Standing Committee on Commerce, which identified an anti-export tax regime, limited access to financing, high energy tariffs and inadequate trade facilitation measures as key factors increasing business costs.

Jawad said the ministry's assessment reinforced concerns repeatedly raised by the business community and underscored the need for reforms aimed at improving competitiveness, attracting investment and increasing exports.

Growth Securities Head of Research Nasheed Malik said Pakistan's reliance on IMF financing reflected underlying fiscal and governance challenges. However, he noted that IMF-supported programmes help enforce fiscal discipline and prevent excessive government spending.

"The IMF is primarily concerned with recovering its money and ensuring programme targets are met. It does not focus on how policies affect citizens. That responsibility rests with the government," Malik said.

Among its recommendations for the June 10 budget, the PBF has proposed replacing the petroleum levy with an 18% general sales tax on petroleum products, saying the move would create a more transparent taxation framework.

The forum also called for targeted support for cotton production to strengthen the textile value chain and reduce dependence on imported cotton.

In addition, it urged the government to introduce budgetary measures to develop the blue economy and modernise agriculture, arguing that both sectors have significant untapped potential to support exports and long-term economic growth.

The business body also recommended replacing the existing tax return process with a simplified one-page return form, saying a simpler filing system would encourage compliance and help broaden the tax base.