Islamabad, Jan 2: The Pakistan Business Council (PBC) acknowledged the economic stabilization achieved under the 2024 federal government but flagged five critical risks that could derail progress while outlining potential growth opportunities for 2025.
Key Risks:
- Sustaining Stability: Fiscal and monetary easing could reverse stabilization gains, risking a balance of payments crisis if growth ambitions are not cautiously managed.
- Delaying Reforms: Privatization and government restructuring require cohesive leadership, which remains uncertain.
- Tax Revenue Deficits: Persistent revenue shortfalls could burden existing taxpayers further, necessitating urgent FBR reforms.
- Energy Costs: High costs and unreliable supply hinder manufacturing competitiveness and job creation.
- Trust Deficit: A strained relationship between businesses and the government could deter investment and partnerships.
Growth Opportunities for 2025:
- Agriculture: With untapped capacity, agriculture offers potential for exports, food security, and rural development.
- Cement and IT Sectors: These industries can boost growth without requiring additional imports or capital investments.
Recommendations:
To sustain fiscal stability and drive growth, the PBC emphasized:
- Reforms in tax policy, including levies on agriculture and property.
- Empowering local governments for better governance.
- Improving the investment climate for domestic and multinational businesses.
- Renegotiating trade agreements for better market access.
- Right-sizing the federal government for efficiency.
The PBC stressed the need for strong leadership and innovative reforms to maintain stabilization gains and achieve long-term economic transformation. Strategic focus on agriculture, IT, and cement sectors, combined with robust tax reforms and policy consistency, could pave the way for sustained growth in 2025.
