PPP Chairman Bilawal Bhutto Zardari on Tuesday said that the country’s economy cannot be run with force and suggested that the federal government allow provinces to collect taxes to bolster the economy.
Speaking to journalists after meeting with the business community at the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Bilawal also suggested that the provinces could directly collect sales tax, in view of independent reports about a Rs3 trillion leakage.
“Wherever you need our help at the level of the president of Pakistan, our governors, we are ready to do so for your district-wise economic uplift plan,” the PPP chief said.
“The prime minister also desires to work for this, but the difference between their approach and ours is that they believe in centralisation and we focus on decentralisation,” he added.
Bilawal acknowledged the business community’s concerns about high tax rates, but maintained that his party believes in collecting more taxes to strengthen the economy.
“Though the goal is the same, the problem is that the sitting and previous governments wanted to run the economy by force. We think that the economy cannot be run by force, but through a soft attitude,” he added.
“You can attract more bees with honey than vinegar. Therefore, if we make our tax rates competitive and give respect to taxpayers, instead of snubbing them or bringing them into the tax net by force, we can get better results,” Bilawal argued.
He recalled that a major example of tax collection was observed before the 18th Amendment was passed, when the federal government used to collect taxes on services through the Federal Board of Revenue and added how taxes were collected during that time.
“After the 18th Amendment, this subject was transferred to the provinces, and Sindh played a leading role, breaking all of the FBR’s previous collection records,” Bilawal stated. “Punjab and Balochistan also broke all records, but Sindh remained on top. It all happened due to decentralisation.”
He suggested that the government give tax-collecting responsibilities to provinces. If the provinces collected more than the targets fixed by the federal government, they would return the difference to the Centre.
“I think it will greatly help the federal government resolve its financial issues,” the PPP chairman maintained.
Bilawal appreciated the proposals presented by the FPCCI and termed them highly valuable, assuring that the PPP would extend its full cooperation through its policy advisory boards.
Speaking on the GSP+ status, he highlighted that this policy had led to an 80 per cent increase in Pakistan’s exports to Europe, while European exports to Pakistan rose by 60pc.
He expressed his desire to learn from Punjab’s business community and welcomed their positive and practical suggestions, noting that historical narratives are often misrepresented.
The PPP chief underscored the vital role of the business community in strengthening the economy and recalled that the PPP laid the foundation of CPEC.
He assured that his party would provide full support in addressing issues faced by the business sector and noted China’s keenness to promote Pakistani products in its markets.
Reaffirming his commitment, he said his party would continue to play an active role in resolving problems of traders and added that, during his party’s tenure, significant opportunities were created to enhance exports.
Bilawal also expressed pride in working closely with China and stated that Prime Minister Shehbaz Sharif is equally committed to resolving the challenges faced by the business community.
Bilawal urged traders and industrialists to increase exports and stressed the collective need to expand Pakistan’s tax base.
He noted that the national challenges cannot be attributed solely to the IMF, acknowledging the difficulties in establishing economic zones, and expressed his commitment to working closely with the federal government to overcome these hurdles.
Implement consensus on new provinces before creating them: Bilawal
At a separate event, Bilawal advised the government to first implement a consensus on forming new provinces in the National Assembly before discussing creating 20 new ones.
“Before talking about creating 20 provinces, first implement the consensus that already exists for new provinces,“ he said in a talk with senior journalists at Bilawal House on Tuesday evening.
The PPP scion said that the Punjab Assembly had passed a resolution for the creation of a new province.
“There is already consensus in the National Assembly on forming new provinces,” he said, suggesting acting on the existing consensus for South Punjab first before moving forward.
“I only referred to the Punjab Assembly’s resolution. I cannot even think of dividing Punjab,” he said.
A recent campaign for new provinces in Pakistan has gained traction. Federal Minister Abdul Aleem Khan and former Lahore district nazim Mian Amer Mahmood advocated for dividing existing large provinces like Punjab and Sindh into smaller, more manageable administrative units for improved governance, service delivery and local development.
The PPP chief said that reconciliation was the only way forward for the country. “If we continue in an environment where we cannot even talk to each other, or if the situation in one province worsens, problems will multiply.”
To a question whether he would meet PTI founder Imran Khan in jail, Bilawal said: “I went to meet Nawaz Sharif in Kot Lakhpat Jail, and he even walked free after he launched attacks on us.“
In a reference to the PML-N’s insecurities towards the PPP, he said that when he came to Punjab, he did not speak against anyone, yet even that was not tolerated.
“I ask them (PML-N) to appoint their own governor in Sindh, but they don’t. It has always been a hallmark of the PPP that we remained democratic,” he said.
Commenting on Imran, he said the PTI leader was still stuck in the same mode when he was ousted from power in 2022.
“This is not only creating problems for the PTI but also puts the entire system under stress,” he said, adding that if matters continued this way, there would be no path toward political reconciliation.
