Budget Reactions from Business Leader Mian Zahid Hussain

Mian Zahid Hussain, serving as Chairman of the National Business Group Pakistan, President of the Pakistan Businessmen and Intellectuals Forum, President of the All Karachi Industrial Alliance, and Chairman of the FPCCI Advisory Board, shared his perspectives on the recently announced budget. He noted that the budget’s total allocation is Rs 17,573 billion, with significant emphasis on defense, debt interest payments, and revenue generation.

He mentioned projections indicating that the federal and provincial governments are expected to allocate Rs 3,800 billion towards initiatives aimed at public welfare.

While Mian Zahid Hussain recognized the budget’s intention to balance national security needs, internal stability, and fiscal prudence, he voiced apprehensions regarding potential adverse effects on the general populace, the business sector, and investors.

Addressing the business community, he cautioned that imposing taxes on key industries like renewable energy could impede the nation’s economic progress.

He specifically highlighted that the proposed 18 percent sales tax on imported solar panels would be a counterproductive step, hindering the expansion of alternative energy sources.

Mian Zahid Hussain emphasized that the budget has led to increased costs for several commodities, including vehicles, fuel, beverages, bottled water, pet supplies, coffee, and chocolates.

The elevated levies and carbon taxes on petroleum products are anticipated to intensify the financial strain on the middle class and salaried individuals.

This situation could potentially impose financial difficulties on many, a concern shared by the business leader.

Mian Zahid expressed support for the increased allocation to defense, deeming it a necessary reaction to recent hostile actions and the assertive military stance from India. He characterized investment in national security as indispensable.

He underscored the need for the government to foster impact financing to accelerate progress in education, healthcare, and social welfare.

Although acknowledging the potential of tax reforms and digital monitoring systems to enhance revenue collection, he cautioned that such measures must be accompanied by taxpayer support and facilitation to be truly effective.

He welcomed the introduction of a simplified income tax return form, especially in response to the sustained requests from SMEs and salaried individuals.

Referring to incentives provided to the housing and real estate sectors, including mortgage system reforms, he suggested this could stimulate investment and potentially decrease the cost of smaller homes and apartments, which would be a positive development for the public.

These incentives may invigorate the real estate market and improve housing affordability for the middle class.

He commented that while the modest increase in salaries and pensions might not fully satisfy public expectations, it should still offer some relief amid the ongoing inflationary pressures.

Mian Zahid described the tax collection target of Rs 14,100 billion as ambitious, noting it is a 20 percent increase over the actual collections from the previous budget. He indicated that achieving this goal without expanding the tax base would be challenging but crucial for sustained economic stability.

He further mentioned that the implementation of carbon levies on petrol, diesel, and furnace oil could further escalate prices, thereby exacerbating inflation and indirectly impacting both the economy and the citizens.

In summary, Mian Zahid Hussain concluded that the budget demonstrates efforts towards stability, but enduring, sustainable growth necessitates strategic depth, foresight, and the protection of renewable energy, online businesses, and social sectors.

He urged the government to dedicate funds within the budget to secure these areas, thus reinforcing the nation’s economic foundations. The need for these strategic reforms is pressing, and Mian Zahid Hussain’s call for action is unequivocal.