FPCCI shares its Charter of Economy with Aurangzeb

ISLAMABAD: The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Tuesday shared a comprehensive Charter of Economy prepared by the federation with Finance Minister Senator Muhammad Aurangzeb and his team.

The charter was shared by an FPCCI delegation during a meeting with the finance minister, according to a press release issued by the finance ministry here. The delegation was led by President FPCCI Atif Ikram and included Patron-in-Chief SM Tanveer and Chief Executive of FF Steel, KP, Senator Noman Wazir.

The FPCCI team emphasized that this Charter was developed to foster political consensus and intended to meet all stakeholders including political parties to form an effective economic strategy that transcends political divides and addresses Pakistan’s economic challenges. Their goal is to free the country from its economic calamities by prioritizing the nation’s development and economic growth, particularly to meet the needs of the growing population, especially the youth, who form the core of Pakistan’s demographic structure. Senator Noman provided a detailed presentation on the recommendations outlined in the Charter of Economy.

The key recommendations included reorganization of specialized civil services with the establishment of dedicated groups in critical sectors such as Energy, Finance, Industry, and Health to lead policy formulation and ensure informed decision-making.

The charter called for embracing solar and wind energy, seen as the cheapest sources of power, and proposed keeping wheeling charges for the Competitive Trading Bilateral Contract Market at a maximum of Rs4 per KWh. It emphasized a greater focus on regional trade and development financial institutions, with proposals for at least 20% of lending directed towards long-term CAPEX and 10% towards startup CAPEX. A stable exchange rate was recommended to support exports and discourage imports that do not comply with the Pakistan Standards and Quality Control Authority (PSQCA).

The Charter also stressed the importance of a uniform gas pricing structure for industries across the country to promote industrial growth. Further recommendations included transferring ownership of State-Owned Enterprises (SOEs) to employees, allowing them to manage these enterprises or privatize them, and converting their pension funds into equity.

The presentation proposed strategic reforms on various fronts, including debt management, trade partnerships, tax compliance, energy efficiency and exploitation of mineral resources. It also called for a progressive taxation model for agriculture, better governance structures, pension and welfare reforms, digitalization, and improvements to the bankruptcy laws in Pakistan.

Aurangzeb welcomed the FPCCI delegation and praised their efforts in preparing a comprehensive and timely Charter, noting that such initiatives are crucial at this juncture, even when political parties agree on a common set of economic goals. He reflected on his previous involvement in the preparation of a similar Charter of Economy by the Pakistan Business Council in 2020, highlighting the importance of uniting all stakeholders on a common platform to address the challenges of declining living standards and achieve sustainable economic growth.

The finance minister reiterated that quick fixes would not suffice, and a steady, unified effort was required to drive Pakistan’s economic recovery. He briefed the delegation on ongoing reforms in key sectors, including macroeconomic stability, taxation, energy and rightsizing of the federal government.

He reassured the delegation that the government was committed to resolving pressing issues, such as energy costs for industries, to foster industrialization and export-led growth, in line with the government’s economic vision.

The delegation expressed appreciation for the finance minister and his team’s efforts for improving Pakistan’s economic indicators and hoped that the government would continue addressing critical issues to support industrialization and economic growth in the country.

The meeting was attended by senior officers of the ministry of finance and the Federal Board of Revenue (FBR). Amongst the businessmen who attended the meeting included Patron-in-Chief, United Business Group (UBG), MNA Dr Mirza Ikhtiar Baig, Ahsan Bakhtawri, former president Islamabad CCI, Momin Malik Guard Group, Zafar Bakhtawri, Secretary General UBG, Zaki Aijaz, Vice President FPCCI, Tariq Mehmood, Chief Executive OTTO Petroleum, Nasir Qureshi, President Islamabad CCI, Sohail Altaf, Group Leader Rawalpindi CCI, Ashfaq Ahmed, Vice President FPCCI Gilgit-Baltistan, Tariq Jadoon, Vice President FPCCI, Malik Sohail, Chairman Coordination, Adeel Rauf, Convener FPCCI, Riaz Arshad, Convener FPCCI, Quratulain, Vice President FPCCI, and Hamid Waleed, Economic Advisor to Patron-in-Chief UBG.