Industrialists in Faisalabad, Pakistan, have urged the government to lower the interest rate to at least 10% and to reduce electricity and gas costs.
The appeal from Industrialists comes ahead of the upcoming fiscal year 2024-25 federal budget, which the coalition government led by the Pakistan Muslim League-Nawaz (PML-N) will present in Parliament House.
As informed by sources, Senator Muhammad Aurangzeb, the Federal Minister of Finance and Revenue, will conduct the budget presentation and simultaneously introduce it to the Senate. The Federal Board of Revenue (FBR) is expected to set a revenue target exceeding 12 trillion rupees.
At a press conference regarding the budget, officials from the Pakistan Hosiery Manufacturers Association in Faisalabad voiced concerns over the taxation policies. They highlighted the government’s tendency to increase the tax burden on compliant taxpayers, ironically leaving tax evaders unaffected.
The industrialists emphasized the significant reduction in inflation rates across the country and recommended that the government correspondingly reduce the interest rates to facilitate economic growth. Dr. Khurram Tariq, President of the Faisalabad Chamber of Commerce, expressed disappointment over the lack of industry consultation in the budget-making process.
The industrial leaders also warned of severe actions, including shutting down their factories, if the budget does not address their concerns with fair and balanced policies. According to the Economic Survey of Pakistan, the current fiscal year has seen a modest industrial growth rate of 1.21%, with a marginal decline in production by large industries and a significant contraction in the textile sector’s growth by 8.3%.
