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Saturday December 04, 2021

FPCCI dismayed over IMF demands

November 26, 2021

KARACHI: Implementation of all conditions of International Monetary Fund (IMF) will put an enormous burden of Rs800 billion on people and small businesses of the country, feared Federation of Pakistan Chambers of Commerce & Industry (FPCCI) on Thursday.

The apex trade body criticized over the government's approach for not taking the business community into loop over expected mini-budget.

FPCCI President Nasser Hyatt Maggo questioned, “What will it entail for the business and economy?” saying there were rumors that the government would facilitate only selected vested interests in her planned mini budget next week.

If all measures demanded by IMF are implemented, the people of Pakistan and the small and medium-sized enterprises (SMEs) would have to endure an enormous burden of Rs. 800 billion, he added.

Referring to the announcement made by Finance Minister Shaukat Tarin, he said there is no way the current state of economy can withstand an additional burden of Rs. 350 billion in taxes and the economy might collapse, he feared.

Maggo stressed that the finance minister should immediately start consultative process with FPCCI over the planned mini budget. FPCCI has always kept doors of the apex representative trade body of Pakistan open, he said. He added the government, however, never paid any heed to the mutually-beneficial proposals they put forward.

Maggo said FPCCI sent its proposals on taxation reforms and broadening of the tax base, way back in February 2021, instead, the government has embarked on the path of tax pyramiding.

He reiterated that no more taxes can be extracted from the existing taxpayers, urging the center to reach out to alternative multilateral financing sources and friendly countries for bilateral financing.