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Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman, while addressing the 4th Pakistan Future of Retail Business Summit and Expo at a local hotel here on Thursday, stressed the need to shift Pakistan’s economic focus beyond agriculture and industry
LAHORE, (UrduPoint / Pakistan Point News – 17th Oct, 2024) Punjab Finance Minister Mian Mujtaba Shuja-ur-Rehman, while addressing the 4th Pakistan Future of Retail Business Summit and Expo at a local hotel here on Thursday, stressed the need to shift Pakistan’s economic focus beyond agriculture and industry.
He highlighted the significant role of the retail and wholesale sectors, which contribute over Rs. 20 trillion to the national economy, making up 18pc of the GDP and providing employment to over 10 million people.
The theme of the summit, “Building a Stronger and Smarter Retail Ecosystem,” addressed the evolving dynamics of the retail sector. The Minister stated that retail is a vital component of domestic commerce and plays a crucial role in driving national prosperity. He noted the substantial progress in Pakistan’s retail landscape, with organized retail stores and the growth of e-commerce bringing local brands like Khaadi and Nishat to international prominence, boosting the country’s export revenues.
Despite these successes, the Minister acknowledged challenges, particularly the fact that 90% of the retail sector operates informally, hindering its full potential. He emphasized the need to modernize regulations and implement a single-window compliance system at all levels of government. “Streamlining the regulatory framework will encourage retailers to formalize their businesses, enhance tax contributions, and foster a more competitive market,” he remarked.
Mian Mujtaba Shuja-ur-Rehman also discussed the disparities in the tax burden, where Tier-1 retailers, representing only 10pc of the sector, shoulder a 25-30% tax burden, while smaller retailers contribute less than 5pc. He called for reforms to ensure a fairer tax structure and create an environment that promotes business growth across the board.
The Minister outlined several initiatives undertaken by the Punjab Government under the leadership of Chief Minister Maryam Nawaz Sharif to support the retail sector and boost economic growth.
These include the establishment of Special Economic Zones (SEZs) to attract both local and international investment, fostering industrial growth, and creating job opportunities. He also highlighted efforts to simplify business operations through digital platforms and one-window services, making it easier for businesses to start and expand with reduced bureaucratic hurdles.
In addition, the Punjab Trade and Investment Policy is aimed at enhancing the competitiveness of sectors like retail, logistics, and manufacturing. The government is also focusing on infrastructure development, ensuring improved connectivity across the province, and providing essential logistics support to businesses. Small and medium enterprises (SMEs) are being offered financial and technical assistance to help them scale up and compete in global markets. The Minister also lauded the Punjab Skills Development Fund (PSDF), which equips the youth with vocational and technical skills, aligning them with the demands of modern industries.
In conclusion, Finance Minister Mujtaba Shuja-ur-Rehman reaffirmed the government’s commitment to creating a conducive business environment that fosters innovation and growth in the retail sector. He noted that the modernization of the retail industry would lead to significant job creation, enhanced exports, and overall economic prosperity for Pakistan. He appreciated the role of platforms like the Future of Retail Business Summit in encouraging dialogue between stakeholders and addressing challenges that can propel the sector forward.
The minister encouraged participants to capitalize on this opportunity to build a resilient and dynamic retail ecosystem that benefits not only the business community but the entire economy.