Pakistan’s Economy Set for Transformation with Focus on Minerals and IT

Lahore: Federal Finance Minister Senator Muhammad Aurangzeb announced that the Information Technology and mineral sectors are poised to be transformative for Pakistan’s economy. Prime Minister Shahbaz Sharif’s leadership is expected to yield positive economic outcomes soon. This was discussed at a meeting attended by representatives from the Lahore Chamber of Commerce and Industry (LCCI), Federal Board of Revenue (FBR), and other chambers.

Aurangzeb emphasized the potential of minerals, citing nickel’s success in Singapore and suggesting copper could similarly benefit Pakistan. He noted the growing global interest in Pakistan’s mineral and IT sectors, with the government working to remove barriers to local and foreign investment. He also highlighted efforts to reduce financing costs, power tariffs, and improve taxation policies to foster industrial growth.

The minister addressed foreign investors’ confidence, stating that issues with profit repatriation have been resolved. He also acknowledged the tax burden on the salaried class, promising relief measures and aiming to boost the tax-to-GDP ratio to offer broader economic benefits.

LCCI President Mian Abuzar Shad praised government initiatives aimed at economic revival, such as inflation control and policy rate reduction. He highlighted the “Uraan Pakistan” program, which targets economic growth, job creation, and increased exports. Shad pointed out Pakistan’s opportunity to expand exports to the U.S. due to favorable tariff conditions compared to regional competitors.

However, Shad expressed concerns over industrial competitiveness, citing high business costs and a significant trade deficit. He urged the government to provide cheaper electricity and gas, maintain single-digit financing costs, and expand the tax base without overburdening existing taxpayers.

LCCI Senior Vice President Engineer Khalid Usman called for revising the turnover threshold for withholding agents and criticized the FBR’s practices affecting individuals. He urged timely tax refund disbursements and recommended an automated system for income tax refunds to enhance efficiency.

Vice President Shahid Nazir Chaudhry advocated for long-term economic policy planning and the removal of the Sindh Infrastructure Development Cess to boost exporter competitiveness. SAARC Vice President Mian Anjum Nisar and Shahid Nazir emphasized the importance of innovation and R and D deductions for private companies to stimulate technological advancement in Pakistan.