Budget to cripple FDI and exports, warns PBC

The Pakistan Business Council (PBC) has said that the federal budget 2024-25, approved on Friday, remained almost as regressive as the bill proposed earlier. “Sacred cows will graze freely while the golden geese will be cooked. More alarmingly, none of the country’s fundamental needs will be facilitated,” remarked PBC Chief Executive Ehsan Malik. Exports and investment will not be encouraged. Existing multinational companies will reconsider their viability, putting off new foreign direct investment (FDI). He added that many budgetary measures will have an inflationary impact and delay the reduction in the policy rate. Meanwhile, ex-Fata/Pata will enjoy sales tax concessions for another year while the rest of the country’s iron, steel, and other taxed sectors suffer from a diversion into their market. He lamented that loose and often adulterated milk will gain share over safe and now sales-taxed packed milk in a country suffering nutritional challenges.