‘Retail industry upgrade to bring about prosperity’

LAHORE:Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman emphasised the need to shift Pakistan's economic focus beyond agriculture and industry as the retail and wholesale sectors are playing a significant role by contributing over Rs20 trillion to the national economy, making up 18 percent of the GDP and providing employment to over 10 million people.

The minister stated this while addressing the ‘4th Pakistan Future of Retail Business Summit and Expo’ held here at a local hotel. He said that retail is a vital component of domestic commerce and plays a crucial role in driving national prosperity. He noted the substantial progress in Pakistan's retail landscape, with organised retail stores and the growth of e-commerce bringing local brands to international prominence, boosting the country's export revenues.

The theme of the summit, ‘Building a Stronger and Smarter Retail Ecosystem,’ addressed the evolving dynamics of the retail sector. Despite these successes, the minister acknowledged challenges, particularly the fact that 90% of the retail sector operates informally, hindering its full potential. He emphasised the need to modernising regulations and implementing a single-window compliance system at all levels of government. ‘Streamlining the regulatory framework will encourage retailers to formalise their businesses, enhance tax contributions, and foster a more competitive market,’ he remarked.

Shuja-ur-Rehman also discussed the disparities in the tax burden, where Tier-1 retailers, representing only 10 percent of the sector, shoulder a 25-30 percent tax burden, while smaller retailers contribute less than 5 percent. He called for reforms to ensure a fairer tax structure and create an environment that promotes business growth across the board. The minister outlined several initiatives undertaken by the Punjab government under the leadership of Chief Minister Maryam Nawaz to support the retail sector and boost economic growth. These include the establishment of Special Economic Zones (SEZs) to attract both local and international investment, fostering industrial growth, and creating job opportunities. He also highlighted efforts to simplify business operations through digital platforms and one-window services, making it easier for businesses to start and expand with reduced bureaucratic hurdles.

In addition, the Punjab Trade and Investment Policy is aimed at enhancing the competitiveness of sectors like retail, logistics, and manufacturing. The government is also focusing on infrastructure development, ensuring improved connectivity across the province, and providing essential logistics support to businesses. Small and medium enterprises (SMEs) are being offered financial and technical assistance to help them to scale up and compete in global markets.

The minister also lauded the Punjab Skills Development Fund (PSDF), which equips the youth with vocational and technical skills, aligning them with the demands of modern industries. Shuja-ur-Rehman reaffirmed the government's commitment to creating a conducive business environment that fosters innovation and growth in the retail sector. He noted that the modernisation of the retail industry would lead to significant job creation, enhanced exports, and overall economic prosperity for Pakistan. He appreciated the role of platforms like the Future of Retail Business Summit in encouraging dialogue between stakeholders and addressing challenges that can propel the sector forward.

The minister encouraged participants to capitalise on this opportunity to build a resilient and dynamic retail ecosystem that benefits not only the business community but the entire economy.