The Pakistan Business Council (PBC) is extremely concerned about the 119 percent rise in the number of highly skilled and experienced Pakistanis leaving the country.
“There is reason for serious concern given the 119% rise in Pakistani emigration. A significant number of these people are skilled, seasoned experts that the formal sector is losing. It stated in a tweet on X that “this brain drain will be accelerated by the proposed changes in slab rates, particularly the earlier application of the 35% top rate.”
According to PBC, when people move abroad, they take their skills with them and the formal sector suffers as a result of them joining the unregulated informal economy. Salaried workers incur several expenses that the state is supposed to pay for but neglects to do so.
“It is unjust to propose raising tax revenue from this industry,” it continued. Professionals leaving Pakistan for lower-taxed surroundings will have a negative impact on the private sector, in contrast to a government that can borrow money and create money to finance salary increases for staff members by 20–25%. Last Monday, the federal government’s budget 2024–25 suggested an income tax on salaried class members of up to 35 percent. The slabs are as follows in full:
