Chief of Army Staff General Asim Munir

LAHORE: In response to the Pakistani rupee's recent decline against the US dollar, Chief of the Army Staff (COAS) General Asim Munir has declared intentions to bring money exchanges under the tax net, according to reports from The News.

General Munir made this announcement during a meeting with the business community held at the Corps Commander’s Headquarters in Lahore on Sunday. In this gathering, he assured businessmen of enhanced transparency in dollar exchange operations and interbank rates.

A statement released by the Lahore Chamber of Commerce and Industry (LCCI) detailed the meeting, which included LCCI President Kashif Anwar and other prominent business figures, along with Interim Punjab Chief Minister Mohsin Naqvi.

General Munir emphasized the crucial role of the Special Investment Facilitation Council (SIFC) in attracting significant investments, potentially reaching up to $100 billion from countries like Saudi Arabia, the UAE, Kuwait, and others. He also revealed the establishment of task forces dedicated to economic matters and various sectors.

Kashif Anwar, echoing the sentiments of the broader business community, suggested active collaboration with all chambers to incorporate diverse perspectives into the task force’s agenda. He raised concerns regarding high taxation on electricity bills, proposing reduced income and sales tax rates to ease the burden on the public.

Anwar also recommended a practical approach to fuel adjustment charges, advocating for their collection during lower electricity consumption periods in the winter months to alleviate financial stress on consumers.

Recognizing the pivotal role of exchange rates in Pakistan’s economic landscape, Anwar called for increased control over US dollar rates in both interbank and open markets. He pointed out the disparity between the State Bank’s rate and the illegal money exchange business (Hundi rate), suggesting that aligning these rates would encourage remittances through official channels.

Anwar stressed the need for sustained dialogue between the business community and relevant authorities and expressed concerns over the lack of responsiveness to business sector suggestions. He further called for a unified commitment from political parties, proposing the signing of a charter of economy as a precondition before any upcoming elections.

Building on General Munir's earlier remarks about the existence of a substantial grey economy, estimated to be two to three times the size of the documented economy, Anwar proposed an innovative approach. He recommended incentivizing the grey economy sector to transition into the formal, white economy, offering a strategic solution to address this pervasive issue.

The LCCI chief emphasized that expanding the tax base would remain elusive as long as the grey economy remains unincorporated and unable to contribute to the formal white economy.

This meeting showcased the shared commitment of both the business community and military leadership to collaboratively address pressing economic challenges and propel the nation toward growth.

As Pakistan continues to navigate economic complexities, this constructive dialogue signifies a promising step toward finding practical solutions and fostering economic prosperity for the nation.

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