KARACHI: Chairman of the Businessmen Group, Muhammad Zubair Motiwala, has called for immediate fiscal, energy, and export-related policy interventions to safeguard Pakistan's economy in light of increasing US-Iran tensions. He cautioned that the deteriorating regional situation could severely destabilize the country's economic stability if timely actions are not undertaken.

According to Karachi Chamber of Commerce and Industry, Motiwala expressed these concerns in a letter to Federal Minister for Finance and Revenue Muhammad Aurangzeb, highlighting the business community's growing unease over the impact of regional instability on trade and the broader economy. He pointed to disruptions in global trade flows and volatility in energy markets as significant challenges exacerbated by the US-Iran tensions.

Motiwala recommended the immediate restoration of zero-rating of sales tax for export-oriented sectors to alleviate liquidity constraints faced by exporters due to current refund-based regimes. He argued that this move would lower capital costs and enhance the competitiveness of Pakistani exports. Additionally, Motiwala proposed shifting customs valuation bases to Ex-Works (EXW) to provide a fairer taxation structure and reduce costs for industries.

Addressing energy concerns, Motiwala criticized the high industrial electricity tariffs in Pakistan, noting that Karachi's industrial sector had not received its share of the Federal Government's Incremental Consumption Package meant to provide tariff relief. He demanded the disbursement of pending funds to support Karachi industries facing financial challenges.

Moreover, Motiwala urged rationalization of industrial gas tariffs and emphasized the need for a transparent pricing mechanism to ensure cost-effective supply. He also called for the restoration of freight subsidy schemes to help exporters manage rising logistics costs amid geopolitical tensions.

In closing, Motiwala pressed for the swift release of pending tax refunds to alleviate exporters' liquidity issues and reduce reliance on costly borrowing.