KARACHI: Mian Zahid Hussain, President of the Pakistan Businessmen and Intellectuals Forum (PBIF) and Chairman of the National Business Group Pakistan (NBG), has highlighted the critical need to integrate Pakistan's Rs 12 trillion cash economy into the tax net to ensure sustainable economic growth. According to a recent press release from the Pakistan Businessmen and Intellectuals Forum, the country's economic indicators show mixed signals. While average inflation has dropped to 6.7 percent over the past 11 months, and foreign exchange reserves are at a four-year high, challenges remain, notably the stagnant export figures and declining foreign direct investment (FDI).

Hussain noted that although recent budget measures, such as corporate tax relief and the extension of IT export income tax exemptions, aim to bolster the economy, they might not suffice to achieve the desired economic targets. He emphasized the need for a comprehensive approach to tax the substantial undocumented economy, from which Rs 4 trillion in taxes could potentially be collected. The Federal Board of Revenue (FBR) has identified untaxed transactions worth Rs 7.1 trillion, which could be digitized to expand the tax net. Hussain also highlighted comparative corporate tax rates, pointing out that Pakistan's rate of 29 percent is significantly higher than those in countries like Turkey and Bangladesh.

In addition to fiscal reforms, Hussain stressed the importance of a long-term economic vision, advocating for a growth rate of 5 to 6 percent and a savings rate of 20 percent. He identified the urgent need for reforms in health and education to improve Pakistan's human development indicators, currently among the lowest globally. Hussain concluded by asserting that export-led growth is essential for sustainable development and that creating a favorable environment for industrialists should be a government priority.