Junaid Naqi, President of the Korangi Association of Trade and Industry (KATI), has urged the government to introduce tax reforms aimed at expanding the tax net without overburdening existing industries. He emphasized the need to bring untapped sectors into the tax system to ensure a fairer distribution of the tax burden.

He welcomed the International Monetary Fund’s (IMF) decision to lower Pakistan’s tax collection target by Rs620 billion, reducing it from Rs12.97 trillion to Rs12.35 trillion. Naqi noted that this adjustment acknowledges the country’s economic challenges, especially considering the Rs600 billion revenue shortfall over the past eight months. He stressed that this move would ease pressure on businesses and provide much-needed relief to the industrial sector.

While appreciating the tax-to-GDP ratio remaining steady at 10.6 percent, he urged the government to adopt pro-business policies to stimulate economic growth. He also welcomed the projected decline in inflation from 12.5 percent to 7 percent but cautioned that its true impact would only be felt if production costs and raw material prices stabilize.

Naqi advised the government to focus on fostering industrial growth rather than imposing new taxes or mini-budgets that could strain businesses. He emphasized that while maintaining the development budget is crucial, any spending cuts should be carefully managed to avoid hampering industrial productivity and exports.

He concluded by expressing optimism that ongoing discussions with the IMF would safeguard Pakistan’s economic interests and lead to policies that promote stability and long-term growth in the industrial sector.