Pakistan has strong investment potential, but unstable economic policies and high tax rates are discouraging both local and foreign investors, says the Senior Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).
The SVP of FPCCI, Saquib Fayyaz Magoon, made these remarks while addressing a dinner event attended by business leaders, diplomats, and representatives of various trade bodies in Karachi.
The gathering focused on Pakistan’s economic outlook, investment climate, and upcoming federal budget challenges.
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Magoon said that Pakistan is currently attracting renewed global interest due to improved regional perceptions and investment opportunities. However, he stressed that inconsistent policies and heavy taxation remain major barriers to sustainable economic growth.
He warned that without expanding business activity, the government will struggle to achieve long-term stability or meet ambitious tax revenue targets. He added that economic planning must prioritize industrial growth instead of relying solely on higher taxation.
Referring to the upcoming federal budget, Magoon noted that reports suggest the government has set a tax collection target of Rs15 trillion under commitments made with the International Monetary Fund (IMF). He said previous targets were not fully achieved, raising concerns within the business community.
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He emphasized that increasing tax rates alone cannot solve fiscal challenges. Instead, the government must create a business-friendly environment that encourages investment, production, and job creation.
Magoon further stated that overseas Pakistanis’ remittances have supported the national economy, but long-term stability depends on strengthening exports and industrial development.
He said the FPCCI has already submitted detailed budget proposals to the government, highlighting key concerns of the business community, including taxation structure, policy instability, and ease of doing business.
He also called for reforms to simplify the taxation system and improve consistency in economic policies to restore investor confidence.
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Speaking about internal FPCCI matters, Magoon highlighted efforts by the BMP Progressive Group to improve transparency and participation within the organization. He said the group aims to empower members and build future business leaders through inclusive decision-making.
He also appreciated contributions from various trade leaders and stressed the importance of unity within business organizations to effectively raise industry concerns at the national level.
Meanwhile, Chairman of the Pakistan Cotton Ginners Association (PCGA), Sham Lal Manglani, also spoke at the event, highlighting the importance of trust, unity, and strong relationships within the business community.
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He said his long association with FPCCI has allowed him to represent cotton sector issues at national forums and contribute to policy discussions affecting the industry.
The statements reflect growing concern within Pakistan’s business community over economic uncertainty, taxation pressures, and the need for consistent policy reforms to attract investment and support sustainable growth.
