Islamabad: In the wake of rising production costs and weak exports, the government has prepared a major reform plan to provide relief to the industrial and export sectors, which will be presented to the IMF next week.
According to official sources, it has been proposed to eliminate cross-subsidies included in electricity tariffs and eliminate peak hour rates, which will enable industries to get cheaper electricity. Similarly, cross-subsidies in gas prices have also been planned to be eliminated so that factories can reduce their costs.
The document states that the tax system will be made digital and simple so that the business community can avoid complicated procedures. It has also been proposed to eliminate local taxes and additional levies for exporters.
A phased reduction in super tax is also being considered an important part of this package, which is expected to restore investor confidence.
According to trade experts, if energy becomes cheaper and the tax system becomes simpler, Pakistan’s export industry can grow rapidly again. “These reforms will not only strengthen the industry but also create new employment opportunities,” said an export consultant.
All eyes are now on the talks with the IMF, where approval of the package could be a significant breakthrough.
