ISLAMABAD: A delegation of the Rawalpindi Chamber of Commerce and Industry (RCCI), led by President Usman Shaukat and Group Leader Sohail Altaf, called on Federal Minister for Finance Muhammad Aurangzeb in Islamabad.
During the meeting, Usman Shaukat briefed the finance minister on RCCI’s recent trade delegation visit to the United States. He highlighted the chamber’s efforts to enhance bilateral trade by facilitating connections between middle-market companies and SMEs of Pakistan and the United States.
The finance minister appreciated RCCI’s proactive role in promoting trade diplomacy and strengthening business-to-business linkages, and assured that the chamber’s proposals would be incorporated into the upcoming trade policy. The delegation also raised concerns regarding structural and contractual enforcement issues that are hindering bilateral investment. The finance minister responded that these challenges are being addressed through upcoming policy initiatives, including the proposed Industrial Policy, aimed at improving the overall investment climate.
Sohail Altaf conveyed the business community’s serious concerns over the recent increase in petroleum prices, noting that it could trigger a new wave of inflation and place additional burdens on industries and the general public. The delegation expressed particular concern over profiteering by oil marketing companies (OMCs) on existing stock, stating that the recent Rs55 per litre increase is among the highest in the region and has severely affected the common man.
In response, the finance minister explained that the price adjustment was necessary to prevent depletion of petroleum stocks and to ensure uninterrupted supply across the country. He assured RCCI that the government would strictly monitor the situation to prevent any undue inventory gains by companies and enforce a minimum 20-day inventory requirement for all OMCs, which may result in inventory losses if prices fluctuate.
The RCCI leadership emphasized the urgent need for a comprehensive package to stimulate the construction sector, noting that revival of construction activity would generate employment and accelerate economic growth. They also stressed that encouraging local investors is essential, as foreign investment typically follows strong domestic investment.
The delegation further highlighted the importance of a conducive and business-friendly environment for promoting investment and industrial growth.
Despite higher tax collections, excessive scrutiny and harassment by federal and provincial tax authorities are negatively impacting business confidence and discouraging economic activity. RCCI urged the government to adopt austerity measures at the federal level to reduce public expenditures in light of rising costs for the general public.
The finance minister informed the delegation that a meeting chaired by the Prime Minister was scheduled the same day to deliberate on measures to reduce government spending.
The chamber also urged the finance minister to lower the cost of doing business through tax reforms, convey the business community’s concerns to the International Monetary Fund (IMF), and reduce the excessive burden on existing taxpayers. RCCI recommended recognizing compliant and high tax-paying businesses, broadening the tax base instead of repeatedly taxing the same segment, and offering a 10% tax credit to withholding agents to ensure cooperation and efficiency. The finance minister assured that RCCI’s proposals and concerns would be communicated to the IMF and considered in the upcoming federal budget.
The finance minister and his team also appreciated RCCI’s role as a leading chamber of commerce, acknowledging its proactive approach in highlighting key economic issues and providing constructive policy recommendations. Senior Vice President Khalid Farooq Qazi and Executive Member Imran Ali were also present on the occasion.
