Recommendation to increase business hours by 30 minutes, fears of electricity becoming more expensive

The Senate Standing Committee on Finance and Revenue has recommended an initial 30-minute extension of the current business hours to normalize business activities in the country.

However, the Power Division opposed the proposal, arguing that about 600 MW of additional electricity would be required if business hours were extended. According to officials, if furnace oil-fired plants have to be used, the fuel cost per unit of electricity could increase by about Rs 5.

In a meeting chaired by PPP Senator Talha Mahmood, business representatives said that the government can increase income tax and sales tax only if business activities continue. On the other hand, Power Division officials said that the country currently has only one day’s worth of LNG stock, while ordering spot cargoes could further increase the cost of electricity.

The meeting recommended a phased return to normal instead of changing the business hours immediately. Apart from this, the issues of relocation of industries from Pakistan, governance of FBR, dual citizenship of officers, industrial policy and facilitation of businessmen were also discussed.

FBR officials said that various steps have been taken to build trust with the business community. On the directions of the Prime Minister, the Chairman FBR will set up a camp office in Karachi in the first week of every month, while a camp office is also planned to be set up in Lahore for two days.

The sub-committee also recommended renegotiation on the IMF condition of phased elimination of Export Processing Zones and Special Economic Zones by 2035. The committee stressed that Pakistan’s industrial and investment interests should also be kept in mind in this matter.

During the meeting, a briefing was also given on battery energy policy, 3,000 charging stations for electric vehicles, housing, FAR fee, illegal share transfer and cartelization, among other issues.

The committee recommended the use of facial recognition technology for taxpayers whose fingerprints are not verified and directed the FBR and NADRA to resolve this issue at the earliest. In addition, a list of FBR officers holding dual citizenship or permanent foreign residence was also sought.

According to the committee, a business environment is essential for investment and industrial development where the regulatory system facilitates rather than hinders business activities.