Charter of economy presented to overcome challenges

The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday shared a comprehensive charter of economy with Finance Minister Muhammad Aurangzeb and his team.

An FPCCI delegation, led by its President Atif Ikram Sheikh and comprising Patron-in-Chief SM Tanveer and FF Steel Chief Executive Senator Noman Wazir Khattak, met the finance minister, where they emphasised that the charter had been developed to foster political consensus and form an effective economic strategy that could transcend political divide and address economic challenges.

Their goal is to free the country from economic malaise by prioritising its development and growth in order to meet the needs of the growing population, especially the youth, who formed the core of Pakistan’s demographic structure.

Senator Khattak gave a detailed presentation on the proposals and recommendations outlined in the charter of economy. The key recommendations included the reorganisation of specialised civil services with the establishment of dedicated groups in critical sectors such as energy, finance, industry and health care to lead policy formulation and ensure informed decision-making.

The charter called for embracing solar and wind energy, seen as the cheapest sources of power, and keeping wheeling charges for the Competitive Trading Bilateral Contract Market (CTBCM) at a maximum of Rs4 per kilowatt-hour.

It emphasised greater focus on regional trade and development finance institutions, with at least 20% of lending directed towards long-term capital expenditure (capex) and 10% towards startup capex. A stable exchange rate was recommended to support exports and discourage imports that did not comply with the Pakistan Standards and Quality Control Authority (PSQCA) regulations. The charter stressed the importance of a uniform gas pricing structure for all industries to promote their growth.

Other proposals included transferring the ownership of state-owned enterprises (SOEs) to employees to allow them to manage those enterprises or privatising them, and converting their pension funds into equity.

The presentation proposed strategic reforms on various fronts, including debt management, trade partnerships, tax compliance, energy efficiency and the exploitation of mineral resources. It underlined the need for adopting a progressive taxation model for agriculture, better governance structures, pension and welfare reforms, digitalisation and improvement to the bankruptcy law. Finance Minister Muhammad Aurangzeb, while praising the preparation of the Charter of Economy, noted that such initiatives were crucial at this point in time.

He recalled his involvement in drawing up a similar charter by the Pakistan Business Council in 2020 and highlighted the importance of uniting all stakeholders on a common platform to address the challenges of declining living standards and achieve sustainable economic growth.

He reiterated that quick fixes would not suffice and a steady, unified effort was required to drive Pakistan’s economic recovery.

Aurangzeb also highlighted the ongoing reforms that targeted macroeconomic stability, taxation, energy and rightsizing of the federal government. He assured the delegation of the commitment to resolving the pressing issues.