Former Federal Minister and Chairman of Economic Policy and Business Development, Gohar Ejaz, has put forward a comprehensive set of budget proposals aimed at revitalising Pakistan’s economy, with a strong focus on providing relief to the salaried class, boosting the construction industry, and implementing export-oriented reforms, reported 24NewsHD TV channel Sunday.
Ejaz urged the government to reduce the maximum income tax on the salaried class from 35% to 20%, citing the current burden as unsustainable. “The income tax syllabus should also be simplified,” he added.
He emphasised the need for a five-year industrial and export policy, proposing that the construction and housing sector be declared a priority industry, given its link to over 50 allied sectors and its role in generating millions of jobs. "The construction industry is the engine of growth for the country, but it has been severely impacted by heavy taxation," Ejaz warned. He recommended reducing taxes on the sector and abolishing withholding tax for registered taxpayers.
On the monetary front, Ejaz called for bringing the interest rate down to 6% and providing electricity to industries at 9 cents per unit to spur industrial activity and job creation.
To boost exports, Ejaz proposed a 6% tax concession for exporters who increase their exports by 10% annually, urging the government to introduce comprehensive, export-driven economic reforms. “We need strategic incentives to make Pakistani exports competitive,” he stressed.
He also demanded a reduction in super tax, suggesting it only be applied to corporations earning over Rs. 10 billion annually. On trade policy, he recommended gradual reductions in import tariffs to support domestic manufacturing.
Turning to agriculture, Ejaz warned that production of key crops like wheat, cotton, and corn has declined, and stressed the need to reduce input costs for farmers while providing access to modern research and technology. “The agro-industrial sector is the backbone of our country,” he said.
He also took aim at the Export Facilitation Scheme (EFS), blaming it for the closure of local industries. “The government must protect local manufacturers in the upcoming budget,” he asserted, pointing to the 18% sales tax on local cotton and recommending that imported cotton be declared tax-free under the EFS to ensure parity.
A Roadmap to Economic Stability & Export-Led Growth:
— Dr Gohar Ejaz (@Gohar_Ejaz1) June 9, 2025
1. Industrialization must be our top priority. For rapid growth, we need Special Industrial Zones near major cities with full infrastructure and globally competitive Energy rates. Most importantly, our industry must be… pic.twitter.com/KhAklYu5RB
Reporter: Waqas Azeem