Strong action needed to reduce size of black economy: Mian Zahid Hussain
\n Islamabad
\nThe Chairman of the FPCCI Advisory Board and National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, as well as former provincial minister Mian Zahid Hussain, said on Wednesday that the country\u2019s economy is becoming stable day by day due to the support of the government and SIFC.
\nExports, remittances, foreign exchange reserves, and investor confidence are increasing while inflation, interest rates, and unemployment are decreasing, he said.
\nMian Zahid Hussain said that the rupee\u2019s value is stable, and fears of a drop of up to Rs 75 per dollar have died down.
\nTalking to the business community, the veteran business leader said that the stock market is growing rapidly, which is a positive sign.
\nThe business leader stated that it is now necessary to address the FBR\u2019s revenue shortfall. Authorities should accept the challenge of reducing the size of the undocumented economy.
\nHe claims that the IMF has indicated that the GDP rate will be higher than three percent and that lowering electricity prices to nine cents and the markup rate to a single digit is necessary to increase Pakistan\u2019s exports and reduce the trade deficit.
\nHe pointed out that since increased tax collection will lessen the debt load, all stakeholders must join hands to shrink the undocumented economy.
\nAccording to Mian Zahid Hussain, the lack of trust between the public and tax collection agencies is the primary cause of the documented economy\u2019s shrinkage and the undocumented economy\u2019s growth.
\nThere should be no need for human contact between tax collector and taxpayer. A report by Lums reveals that taxpayers, tax collectors, and tax practitioners share Rs 38 out of every Rs 100 collected for the exchequer, leading to a significant reduction in revenue.
\nIn order to restore public confidence in the tax collection agencies, he demanded a tighter accountability system.
\nApart from this, the tax system should be simplified and government spending should be controlled because taxpayers believe their money is being spent on non-developmental projects without a return.
\nMian Zahid Hussain emphasised that digitisation can play a fundamental role in expanding the size of the document economy. Pakistan has consistently lacked sustainable economic stability due to a lack of serious efforts, but this trend can no longer persist.
\nMian Zahid Hussain stated that according to the World Bank\u2019s 2022 report, Pakistan\u2019s black economy is 457 billion dollars annually. According to the actual size of Pakistan\u2019s economy, tax revenue can be at least 18 thousand billion rupees annually, which needs to be addressed so that Pakistan can stand on its own.
\nAbout 75 percent of Pakistan\u2019s labour works in the undocumented sector of the economy, and the spread of the black economy affects the documented economy; if this continues, the country\u2019s economy will not be able to run properly, he warned.<\/p>\n","protected":false},"excerpt":{"rendered":"
Strong action needed to reduce size of black economy: Mian Zahid Hussain Islamabad The Chairman of the FPCCI Advisory Board and National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, as well as former provincial minister Mian Zahid Hussain, said on Wednesday that the country\u2019s economy is becoming stable […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-434984","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n