Islamabad
The American Business Council (ABC) of Pakistan has put forward a comprehensive proposal aimed at fortifying the country’s economy through tax reforms and enhanced ease of doing business in the upcoming budget for 2024-25.
Emphasising the need to shift taxation from turnover to profit, Aisha Sarwari, a Board of Director member of the American Business Council of Pakistan, underscored the importance of restoring investor confidence and expanding the tax base. She made these remarks during the “Pre-Budget Proposal Seminar” hosted by the Ministry of Commerce in Islamabad on Friday (April 5).
Sarwari highlighted the significant contributions of ABC members across various sectors of the economy, with a combined gross revenue surpassing US$ 600 billion. Notably, these businesses directly employ over 130,000 individuals and indirectly support more than a million jobs in Pakistan.
Recognising the economic impact of its members, the American Business Council proactively advocates for their interests in trade and investment matters. Sarwari emphasized that the organisation serves as a vital conduit for dialogue with the Government of Pakistan, regularly providing suggestions and input to relevant authorities.
The Board of Directors of ABC identified illicit trade and smuggling as major challenges undermining the competitiveness of legitimate businesses in Pakistan. High tariffs have led to the smuggling of innovative products into the country, creating barriers for legal imports and commercialization. To address this issue, Sarwari proposed revising tariffs to deter smuggling, thereby boosting government revenue and enhancing Pakistan’s business environment.
In addition, Sarwari suggested imposing restrictions on multinational corporations (MNCs) regarding the importation of branded products. She recommended that only MNCs operating in Pakistan should be permitted to import their brands or obtain a No Objection Certificate (NOC) from the company before other entities can import the product.
These recommendations aim to strike a balance between attracting investment, broadening the tax base, and ensuring fairness in the tax system, according to Sarwari.
Established in 1984, the American Business Council of Pakistan serves as the voice of US businesses operating in the country. As a non-profit organisation, it represents one of the largest groups of single-country overseas investors in Pakistan, comprising Fortune 500 companies, small and medium enterprises, and prominent business leaders from both American and Pakistani backgrounds.
Affiliated with the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), the ABC is also a member of the US Chamber of Commerce (USCC) in Washington D.C. and the Asia-Pacific Council of American Chambers of Commerce (APCAC). Through its collaboration with the US-Pakistan Business Council, the ABC fosters dialogue among its members, businesses, and governmental entities to promote economic growth and development.