PMO takes big step towards fueling economy

ISLAMABAD: Prime Minister’s Office (PMO) has directed the Ministries to take necessary actions on the proposals submitted by the country’s business community with the Prime Minister Shehbaz Sharif during recent meetings.

At a meeting on March 10, 2025, the Prime Minister highlighted the progress made by the government in broad based economic recovery as evident from the macroeconomic indicators. He stressed that fruits of stability are materialising.

He pledged his resolve to lead sustainable progress and prosperity for the nation and not a cycle of boom and bust - as has been the norm in the past. He informed the participants that he attaches great value to the consultative process in the economic reforms journey, which has been embarked on by the government.

Economy set to take off: PM

The PM mentioned that in the current negotiations with the IMF, the Fund wanted to lower targets but he committed to achieving the same targets through better enforcement measures and effective implementation. He exhorted the community to invest and grow and reiterated his full support for a thriving business community and a prosperous nation.

The IMF has reportedly agreed to revise the annual target from Rs12.97 trillion to Rs12.33 trillion, a reduction of Rs640 billion. The revision was due to slower-than-expected economic growth and inflation, while the overall tax-to-GDP ratio target of 10.6% remains unchanged.

Mian Abuzar Shad appreciated the Prime Minister and his team for the economic recovery. He emphasised the need to bring interest rates down, arrest under-invoicing by using technology, share live trade data with China, address UAE visa issues for Pakistani business community, lower tax rates, provide amnesty to attract capital, stop harassment by FBR officials, and clear the backlog of containers at Lahore Dry Port.

Khalid Usman requested the Prime Minister to address delays in customs valuation, patronize and support corporate farming, arrange pooling of agricultural machinery and tools and provision of better seeds for average to small farmers.

Rehman Waseem lauded the PM for achieving a hard-earned economic stability for the nation. He stated that textile exports are rising and even more encouraging is the trend that 85 per cent of the rise is attributed to value-added sector.

However, he noted the difficulties faced by the sector in the wake of razor thin margins. He enumerated high energy prices, natural gas levy on provision of gas to captive power plants (which has now been stayed by IHC) and financing challenges for new export oriented industry.

Khwaja Shahzeb Akram proposed Pharmaceutical Industrial Zone, regulatory controls over cosmetics and nutraceutical industry and facilitating local industry to acquire FDA approval.

Shahid drew PM’s attention towards higher transportation costs and lack of skilled workers. Chief Executive Officer (CEO), Pakistan Business Council Ehsan Malik proposed equitable taxation and Ease of Doing Business.

Kamran Arshad recommended launching of Export Financing Scheme (EFF), revival of cotton, currency controls and a long term textile policy.

Azam Farooq demanded resolution of border issues at Torkham and Kharlachi, continuity of policies, broadening of tax base and better connectivity of KP with railways for cargo purposes.

Kamal Amjad requested PM to facilitate withdrawal of “provincial infrastructure cess” on goods and federal withholding income tax and facilitating provision of international lab and testing facilities.

In response to the proposals of business community, Prime Minister invited Ministers and Secretaries to respond.

Minister Planning, Ahsan Iqbal assured the participants that Gulf countries visa issues are under government’s radar and they are working on them to be resolved at the earliest possible.

Minister National Food Security and Research, Rana Tanveer Khan stated that Agriculture Transformation Plan is being formulated with a target to double cotton production to around 10 million bales.

Finance Minister, Senator Muhammad Aurangzeb informed the chair that all these recommendations of business community are available to the Ministry wherein they are being thoroughly assessed and reviewed for inclusion in the next federal budget.

Minister Petroleum said that the government is fully aware of the difficulties encountered by the business community and is working to ensure predictability and continuity of policies.

Minister Power, Sardar Awais Leghari stated that the power on national grid is available at US Cents 7.6/kWh and urged industry to respond to Service Level Agreements (SLAs) sent by the respective power Distribution Companies to Captive Power Plant Operators.

He further highlighted that government is in the final stages of determining “Wheeling of Power” rates without inclusion of stranded cost and added that wheeling rates will be determined in the vicinity of Rs12/kWh.

Minister for Railways, Hanif Abbasi assured that KP and Balochistan issues will be resolved as top priority.

Special Assistant to the PM on Industries and Production, Haroon Akhtar Khan stressed that exodus of capital can be arrested only by removing the root causes of the exodus as opposed to enforcing stricter currency controls. He noted that he is working to develop one window and provide long term financing for industries.

Chairman FBR Rashid Langrial stated that he has already ordered Lahore Customs to clear backlog of 684 containers at Lahore Dry Port, where the staff will be working double shift and even on weekends.

The Prime Minister directed the participants to ensure that the current IMF program is the last one, an exhaustive exercise of sectoral roadmaps is currently underway under his own supervision and he will ensure that these recommendations and proposals make it to the sectoral level.

He advised all Ministries/Division to address genuine issues of the private sector at their level. He said he will personally study the set of recommendations emanating from the series of engagements and decide on their implementation.

Copyright Business Recorder, 2025