T HE PA K i S TA N

B US iN E SS CO U N C i L
PROFILE
APRIL 2025
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 02

T H E PA KI STA N BU SIN ES S CO UN CIL:

AN OV ERV I EW

The Pakistan Business Council (PBC) is a business policy advocacy platform, established in 2005 by
Pakistan’s prominent private-sector businesses and conglomerates, including multinationals. PBC
businesses cover nearly all major sectors of the formal economy.

The PBC is a not-for-profit entity, registered under Section 42 of the Companies Ordinance 1984. It is a
pan-industry advocacy group, not a trade body and therefore does not advocate for any specific
business sector. Rather, its key advocacy thrust is on easing barriers to allow businesses in Pakistan to
compete in regional and global arenas. The PBC conducts research and holds conferences and
seminars to facilitate the flow of relevant information to all stakeholders to help create an informed view
on the major issues faced by Pakistan.

The PBC works closely with the relevant government departments, ministries, regulators and
institutions, as well as other stakeholders including professional bodies, to develop consensus on major
issues which impact the conduct of business in and from Pakistan. The PBC has submitted key position
papers and recommendations to the government on legislation and other government policies
affecting business. It also serves on various taskforces and committees of the Government of Pakistan as
well as those of the State Bank, SECP and other regulators with the objective to provide policy
assistance on new initiatives and reforms.
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 03

T H E PB C’ S FO U NDI N G
OB J EC TI V E S

01
To provide for the formation and exchange of views on any

question connected with the conduct of business in and

from Pakistan.

02
To conduct, organize, set up, administer and manage campaigns, surveys, focus groups,

workshops, seminars and field works for carrying out research and raising awareness in

regard to matters affecting businesses in Pakistan.

03
To acquire, collect, compile, analyze, publish and provide statistics, data analysis

and other information relating to businesses of any kind, nature or description and

on opportunities for such businesses within and outside Pakistan.

04
To promote and facilitate the integration of businesses in

Pakistan into the World economy and to encourage in the

development and growth of Pakistani multinationals.

05
To interact with governments in the economic development of Pakistan and

to facilitate, foster and further the economic, social and human resource

development of Pakistan.
REC EN T
PU B LiC ATiON S
The PBC’s advocacy is supported by research work
(see www.pbc.org.pk/research.) Some of the major
publications of the PBC include:
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 05

GEN ERA L A DVO C AC Y

M ARK ET ACC ES S A N D COU N T RY R EP ORTS

AF R I C A
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 06

AFG H AN ISTA N A ND C ENTRAL ASIA

SO U T H E AST ASI A

SO U T H AM ER I C A
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F TAS/ T RA D E AG R EEM ENT S

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M AK E-i N - PA K i S TA N S ER i ES – AGR i CU LTU R E

M AK E-i N - PA K i S TA N S ER i ES – M AN U FACT U R i N G & S ERViCES

 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09

R EC ENT EX A M P LES O F THE P BC' S

A DVOC AC Y ENGAGEMEN TS

P B C ’ S DI A LOG UE O N TH E E CONOMY
I SL AM A BA D JA N 28 - 29 202 5

In addition to regular engagements with different stakeholders at various times, once a year PBC
organizes a major event, usually in Islamabad, to present the totality of its advocacy in a holistic manner.
This also provides members an opportunity to interact with multiple stakeholders. PBC’s “Dialogue on
the Economy – 2025” was held in Islamabad between the 28th and 29th of January and involved key
government, diplomatic and multi-lateral decision-makers. It was attended by 125 participants from
member companies and culminated with a meeting of the PBC Board with the Prime Minister. A
synopsis of this is presented to give prospective members an idea of the width and depth of PBC’s
agenda.

D IALOGU E ON TH E ECONOMY - PR OG R AM M E

DAY 1

08:30–09:10 COFFEE / REGISTRATION | Shamadan Hall

09:15–09:40 OPENING | Shabbir Diwan (Chairman, PBC), Ehsan Malik (CEO, PBC)

09:45–10:35 PAKISTAN’S FOREIGN POLICY IN THE EVOLVING GEO-POLITICAL ENVIRONMENT

Dr. Maleeha Lodhi (Former Ambassador to the UN, USA & UK)

10:40–11:00 BREAK

11:05–11:40 EXISTENTIAL THREAT ONE: CLIMATE CHANGE – CHALLENGES & OPPORTUNITIES FOR THE
PRIVATE SECTOR
Keynote Address: Senator Sherry Rehman (Former Minister for Climate Change)
Followed by Panel Discussion
Moderator: Naz Khan (IFC)
Panel: Dr. Zeelaf Munir (Vice Chair PBC, CEO EBM), Nazish Shekha (Head of PBC’s CERB), Anees Khwaja (CEO,
MG Apparel)

11:50–12:20 EXISTENTIAL THREAT TWO: POPULATION GROWTH & WEAK HUMAN CAPITAL
Dr. Ishrat Husain (Former Governor SBP, Former Dean IBA)

12:25–13:25 OUTLOOK ON PAKISTAN’S ECONOMY

Moderator: Dr. Ijaz Nabi (CDPR / IGC)
Panel: Dr. Hafiz Pasha (Economist), Dr. Reza Baqir (Former Governor SBP), Khurram Husain (Journalist),
Mahir Binici (IMF Resident Representative), Najy Benhassine (World Bank Country Rep)

13:30–14:45 LUNCH & THE GOVERNMENT’S OUTLOOK ON THE ECONOMY

Guest Speaker: Senator Muhammad Aurangzeb (Federal Minister of Finance & Revenue)
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10

R EC ENT EX A M P LES O F THE P BC' S

14:50–15:50 ENERGIZING INDUSTRY THROUGH COMPETITIVE, RELIABLE, ENVIRONMENTALLY
A DVOC AC Y &ENGAGEMEN
SUSTAINABLE LESS IMPORT-RELIANT FUEL TS
A conversation between: Kamram Kamal (CEO, HUBCO) and Sardar Awais Leghari (Federal Minister for Energy
(Power))

16:05–16:45 BUILDING BLOCKS FOR THE $60BN EXPORT AMBITION

Moderator: Ziad Bashir (Gul Ahmed Textiles)
Panel: Jam Kamal Khan (Federal Minister for Commerce), Rizwan Diwan (CEO, Novatex),
Musadaq Zulqarnain (Chairman, Interloop)

16:50–17:35 A CASE FOR SELECTIVE IMPORT SUBSTITUTION

Moderator: Shabbir Diwan (Chair PBC, CEO Gatron Industries)
Panel: Rubina Ather (Former Chair, National Tariff Commission), Asif Jooma (CEO, Lucky Core Industries),
Irfan Chawala (CFO, Archroma), Abdul Qayoom Shaikh (CEO, Engro Polymer)

17:40–17:55 TEA

18:00–19:00 PROMOTING FOREX-ACCRETIVE, TECHNOLOGY-INTENSIVE INVESTMENT

Moderator: Ali Khizr
Panel: Azfar Ahsan (Former Minister of State & Chairman BOI), Muhammad Ali Tabba (CEO, Lucky Group),
Arif Saeed (CEO, Servis Group), Kamran Kamal (Mega Motor / BYD)

20:00–21:30 DINNER & VIEWS ON ECONOMIC DIPLOMACY

Senator Mohammad Ishaq Dar
(Deputy PM & Minister of Foreign Affairs)

DAY 2

09:30–10:10 EQUITABLE & INVESTMENT-FRIENDLY FISCAL REGIME

Moderator: Ehsan Malik (CEO, PBC)
Panel: Ali Pervaiz Malik (Minister of State for Finance, Revenue & Power), Rashid Mahmood Langrial (Chairman,
FBR),
Shabbir Diwan (Chairman, PBC), Ziad Bashir (Gul Ahmed Textile Mills)

10:15–11:00 FORMALIZING THE ECONOMY BY DIGITALIZING PAYMENTS

Moderator: Taimoor Ali (Group Head, Digital Finance Services, Karandaaz)
Panel: Omer Bin Ahsan (CEO, Haball), Hamid Ateeq Sarwar (Member IR, FBR),
Aamir Aftab (CPO, Jazz Cash), Naeem Zamindar (CEO, Neem)

11:05–11:20 BREAK

11:25–13:00 THE POTENTIAL OF AGRICULTURE – HOW BUSINESSES ARE TAPPING IT

Moderator: Kazim Saeed (CEO, Pakistan Agricultural Coalition)
Panel: Gen (R) Shahid Nazir (CEO, Green Pakistan initiative under the SIFC), Abrar Hasan (CEO, National Foods),
M. Aminudin (CEO, TPL Insurance), Muhammad Nassir Salim (President & CEO, HBL),
Zafar Masud (President, Bank of Punjab), Syed Yawar Ali (Chairman, Nestlé Pakistan),
Dr. Zeelaf Munir (Vice Chair PBC, CEO, EBM)

13:05–14:30 LUNCH WITH VIEWS ON CPEC & THE RELOCATION OF LABOUR-INTENSIVE

MANUFACTURING TO PAKISTAN
Guest Speaker: Prof. Ahsan Iqbal (Federal Minister for Planning, Development and Special Initiatives)

14:35–15:20 OPPORTUNITIES FOR GLOBAL COMPETENCY CENTRES, CALL CENTRES, & FOR EXPORT OF
SERVICES
Moderator: Ahmed Saquib (Country MD, SAP Pakistan)
Panel: Asif Peer (CEO & MD, Systems Ltd.), Nadeem Elahi (MD & Country Head, The Resource Group),
Mujeeb Zahoor (MD, S&P Global Pakistan), Faeza Asad Khan (Chief Strategy Officer, ABACUS Consulting)

17:15–17:45 CONCLUDING SESSION

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minister s & senior government spea k ers

R EC ENT EX A M P LES O F THE P BC' S

A DVOC AC Y ENGAGEMEN TS

Senator Muhammad Aurangzeb Senator Mohammad Ishaq Dar Ali Pervaiz Malik
Federal Minister for Finance & Revenue Deputy Prime Minister of Pakistan Minister of State for Finance,
Minister of Foreign Affairs Revenue & Power

Gen (R) Shahid Nazir Jam Kamal Khan Sardar Awais Leghari
CEO, Green Pakistan Federal Minister for Federal Minister for Energy
initiative under the SIFC Commerce (Power}

Lt. Gen. Sarfraz Ahmad Dr. Hamid Ateeq Sarwar

National Coordinator, Special Member, IR — Policy
Investment Facilitation Council (SIFC) Federal Board of Revenue
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Thought Leaders and Expert Spea k ers

R EC ENT EX A M P LES O F THE P BC' S

A DVOC AC Y ENGAGEMEN TS

Dr. Ishrat Hussain Senator Sherry Rehman Dr. Maleeha Lodhi Kazim Saeed

Naz Khan Ali Khizar Omer bin Ahsan Taimoor All

Aamir Aftab Naeem Zamindar Ijaz Nabi Khurram Husain

Zafar Masud Reza Baaqir Mahir Binici Najy Benhassine

Robina Ather Muhammad Azfar Ahsan Nadeem Elahi

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13

Opening Address of The CEO, Pakistan Business Council

Ehsan Malik, CEO, Pakistan Business Council
R EC ENT EX A M P LES O F THE P BC' S
Opening Remarks By CEO
A DVOC AC Y ENGAGEMEN TS
Key Message
• It is a great pleasure to have so many join us so early in the morning to explore ways for
Pakistan to achieve sustainable growth.
• PBC has, through its objective, non-sectoral, evidence-based advocacy and the work of its
Centre of Excellence in Responsible Business, grown multi-fold in size, stature, and impact on
the economic footprint.
• From just 14 members at inception, it is now composed of over 100 of the most prominent
local and multinational companies in Pakistan that belong to 20 sectors, split almost equally
between manufacturing and the services industries.
• To date, PBC has published over 250 studies on various facets of the economy and has
conducted numerous events.
• This “Dialogue on the Economy” looks at Pakistan’s challenges and opportunities in five ways:
geopolitical evolution, environmental change, social impact, deployment of technology and
effectiveness of economic management.
• If we are to make this the last IMF program, both the government and businesses need to
change. The status quo is not acceptable.
• Businesses must shed protection, subsidies, and reliance on guaranteed returns. They must
re-learn the art of risk-taking and become export-competitive. Those attending the Dialogue,
especially from the private sector, explore how they would change to realize the opportunities
for Pakistan.

Opening Remarks by the Chaiman PBC

Shabbir Diwan, Chairman Pakistan Business Council & CEO, Gatron Industries

Opening Remarks By Chairman

Key Message
• The resilience and determination of the Pakistani business community in the face of an
adverse economic environment are remarkable.
• Collaboration between the government and businesses is needed to overcome challenges
such as high utility costs.
• There is optimism about the declining oil prices and the potential for increased exports
through reduced energy tariffs.
• PBC will continue to focus on its national development objectives, employment creation, and
inclusive growth.
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Pakistan’s Foreign Policy In An Evolving Geopolitical Environment

Dr. Maleeha Lodhi, Politial Scientist, Journalist, Diplomat & Former Ambassador to the UN, USA & UK
R EC ENT EX A M P LES O F THE P BC' S
Geopolitical Environment By Maleeha Lodhi
A DVOC AC Y ENGAGEMEN TS
Key Takeouts
• A country’s sovereignty and autonomy are severely compromised when it struggles to remain
solvent by repeatedly looking for bailouts and handouts.
• The handouts will not be forthcoming after the US pullout from Afghanistan.
• Our friendly countries are also not impressed by our repeated failure to implement
fundamental reforms. Nor have we offered plausible and bankable investment projects to
boost our economy.
• Increasingly reliant on IMF and other multilateral bodies, we must accept their prescriptions,
however painful they may be.
• The uptick in domestic terror attacks is a source of major concern for our partners, especially
China.
• Pakistan has not comprehensively reviewed its foreign policy for 20 years.
• This review must take input from all stakeholders.
• We must consider five important features: growing multipolarity but weak multilateralism,
US-China competition, rising East-West tensions, the increasing importance of middle powers,
and advancing technology.
• Whilst the Biden administration showed little interest in Pakistan, hoping for a radical reset
from the incoming Trump administration is unrealistic due to Pakistan’s close relations with
China and US’ with India.
• All change must start from home.

Existential Threat One- Climate Change: Challenges And Opportunities For The Private Sector
Senator Sherry Rehman, Chair of the Cliamate and Environment Caucus of the Senate of Pakistan,
Former Federal Minister for Climate Change, Founding Chair of Jinnah Institute

Climate Change By Sherry Rehman

Key Takeouts
• Pakistan is a climate-stressed country. As global warming and emissions are rising, businesses
play a critical role in ensuring that transitions are made towards sustainable ways of operating.
• Companies in Pakistan need to realize that no one is coming to support them and that
sustainability should be embedded in the business case of the company.
• Businesses struggle with electricity shortages, high taxes, low investment, and the need for
renewable energy transitions. Companies need to think about how they will shift to renewable
energy in the next 10 years.
• The health issues stemming from environmental conditions directly impact productivity.
• Climate change is disrupting agriculture, threatening supply chains reliant on natural
resources.
• To ensure businesses stay competitive in foreign markets, it is important to focus on carbon
neutrality. Therefore, more work needs to be done in the area of R&D for innovative solutions.
• Businesses can work on their sustainability by:
a) Creating tip sheets to promote sustainability.
b) Recycling - currently, 30 billion tons of garbage end up in landfills and oceans.
c) Investing in R&D, bridging the gap between industry and academia.
d) Using the youth to advantage; help them scale their sustainability-related projects.
e) Ensuring proper public messaging. Leaders should insist on gender-inclusive and
sustainable messages in advertisements as opposed to promoting consumption.
f) Push for sustainability within supply chains to enable SMEs to scale up.
• A robust reporting culture is crucial for transparency and accountability.
• Public-private partnerships are essential for developing action plans that address sustainable
production and consumption.
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Existential Threat One: Climate Change. Panel Discussion On Challenges And Opportunities
For The Private Sector
R EC ENT EX A M P LES O F THE P BC' S
Dr. Zeelaf Munir, Vice Chair PBC & CEO, EBM
A DVOC AC Y ENGAGEMEN TS
Anees Khawaja, CEO MG Apparel,
Nazish Shekha, Head of Initiative, CERB Pakistan Business Council
Naz Khan, Principal Country, Officer IFCC
Climate Change: Panel Discussion
Key Takeouts
• The government should consider incentivizing responsible businesses that take steps to
mitigate and adapt against climate change, especially in their extended value chains. While
larger businesses can align their organizations to sustainability and work with suppliers, SMEs
need support to decarbonize and manage climate change-related risks.
• Many are quickly moving to install renewable energy for scope 1 and 2 emissions; however,
addressing the scope 3 emissions in the supply chain is challenging.
• The private sector can procure from responsible transportation contractors, but the relevant
authorities can also engage the bulk transport sector to reduce emissions.
• Understanding climate-related risks remains a challenge for Pakistani companies, and the
reporting requirements by the SECP will require companies to report on climate-related risks.
• There is a need for companies to build their capacity, but there is also a need for the
authorities to have related climate data to assess climate-related risks.
• EU’s Carbon Border Tax requires a heightened focus for Pakistan to remain competitive under
the EU’s GSP+.

Existential Threat Two- Population Growth And Weak Human Capital

Dr. Ishrat Hussain, Former Governor SBP, Former Dean IBA,
Former Advisor to Prime Minister for Institutional Reforms & Austerity

Population Growth And Weak Human Capital By Dr. Ishrat Husain

Key Takeouts
• Population growth and the state of human capital don’t get the same attention as
macroeconomic indicators. A high population growth rate dilutes all per capita indicators and
impacts living standards.
• In Pakistan, there are incentives to over-report the population to attract higher NFC Awards. In
India, the role of population size in the distribution of national resources has been reduced.
Instead, weightage is given to factors such as backwardness, poverty, and tax collection. The
Southern states show an impressive decline in fertility rates and improvement in development
indicators compared to the Northern states.
• Pakistan lags behind India and Bangladesh in human capital development due to weak
governance, poor management, dysfunctional institutions, and poor public service.
• The lack of access to basic services has perpetuated inequalities between Baluchistan, Rural
Sindh, Southern KP and Punjab and the major urban centers.
• Urban migration has increased the pressure on poor infrastructure.
• The solution is to devolve governance to the district levels and give more weight to
backwardness and development indicators instead of population size. In 2001-2008,
responsibility for service delivery was shifted to local governments, and it improved.
• Technology and Human Capital powers the modern knowledge economy. Pakistan’s HDI
indicators, such as child stunting, illiteracy, poverty, and child education rates, are woeful.
• Behind China’s success is a revolution in STEM graduates – exceeding USA now.
• Pakistan lacks technical training for labor, investment in R&D, science and technology and has
weak linkages between academia and industry.
• Without improvement in female labor force participation, growth rates will not significantly
improve. Bangladesh is an excellent example, with its higher female labor force participation
and higher Per Capita income.
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Outlook On Pakistan’s Economy

Panel Moderator: Ijaz Nabi, Country Director, Pakistan International Growth Centre
R EC ENT EX A M P LES O F THE P BC' S
Reza Baqir, MD, Alvarez & Marsal, Former Governor SBP,

A DVOC AC Y ENGAGEMEN TS
Khurram Husain, Business and Economy Journalist, Mahir Binici, Resident Representative
International Monetary Fund, Najy Benhassine, Country Director, Pakistan World Bank Group

Outlook On Pakistan’s Economy – Panel Discussion

Key Takeouts
• Pakistan has suffered from several cycles of boom and bust. We have not been patient to
undertake structural reforms before triggering growth hastily.
• The clamour to ignite growth is now building. People are getting impatient. Growth creates
jobs, but if embarked upon prematurely, it leads to import-based consumption and BOP
problems. We need to become ‘fit for growth’ and avoid mistakes of the past.
• Both the government and private sector will need to change to become “fit for growth.’
• Growth should be attempted after significant progress on structural reforms – privatization,
right-sizing of government, broadening of the tax base, implementation of the fiscal accord
with the provinces, including levy of tax on agriculture and property, energy reforms.
• The primary role of the IMF is to provide economic stability, but it entails some pain.
• UraanPakistan is vague and unclear on how the objectives will be delivered.
• In almost all the previous episodes of economic crises, the fiscal deficit preceded the current
account deficit. Hence, fiscal responsibility is of paramount importance.
• There is reason to believe that this IMF program differs from the previous ones because it is
more demanding of front-ended targets, prescribes a closer review of progress on delivery,
and includes provinces in sharing resources and responsibilities.
• Productivity is the key to a nation’s competitiveness. Pakistan lags due to low HDI.
• Structural reforms are the domain of the World Bank, not the IMF. Its $20 Bn 10-year Country
Partnership is designed to address the root causes of Pakistan’s problems—stunting, out-of-
school children, poor gender inclusion, inadequate health facilities, poor productivity, the
impact of climate change, and agriculture and trade reforms. The government must provide
the policy framework and fund the bulk of the investment.
• The primary focus of growth should be on exports and global markets. The private sector must
become outwardly oriented instead of focussing on the domestic market.
• Remittances help balance the current account but also lead to consumption, which stands at
94% of GDP vs about 70% in India and Bangladesh.

Outlook On Pakistan’s Economy – The Government Perspective

Senator Muhammad Aurangzeb, Federal Minister for Finance & Revenue

Outlook On Pakistan’s Economy By Senator Muhammad Aurangzeb

Key Takeouts
• The FM appreciated the quality of PBC’s research and praised its recent study, which
differentiated between export-led “good” and market-seeking “bad” FDI.
• Reaching a $13 Bn level of foreign exchange reserves, representing three months of import
cover, is a good sign of the improving economy, as is lower inflation and policy rate.
• The budget process is broken and mathematical. Therefore, the government has preponed it
to allow sufficient time to review the strategic fit of the proposals. PBC was the first to present
its recommendations, which were of high quality and being examined in detail.
• Fiscal policymaking will be separated from tax collection. This should go a long way toward
meeting PBC’s recommendations to drive tax collection by promoting business growth and
through a predictable policy that is well integrated with those of other ministries.
• Tax returns will be further simplified.
• Fiscal space permitting, tax rates will be reduced, especially for salaried employees.
• Right-sizing of the government is moving ahead. Pension reforms have been enacted for new
government employees.
• The KP and Punjab governments have passed legislation for a tax on agriculture.
(Subsequently, so have the Baluchistan and the Sindh provinces)
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Energizing Industry Through Competitive, Reliable, Environmentally Sustainable And Less

Import-Reliant Power
R EC ENT EX A M P LES O F THE P BC' S
Kamran Kamal, CEO, The Hub Power Company
A DVOC AC Y ENGAGEMEN TS
Sardar Awais Leghari, Federal Minister for Energy (Power)

Energizing Industry – Conversation

Key Takeouts
• Sardar Awais Leghari highlighted the inefficiency of current structural resources and
emphasized the need for privatization, restructuring, and market liberalization.
• Circular debt is proposed to be transferred to national debt to alleviate the burden on
consumers.
• The energy sector privatization is progressing, with plans to enable private power trading
within 3-6 months and full implementation in 2-4 years.
• Inefficient plants will be shut, and agreements with new projects pending financial close are
terminated.
• Lower borrowing costs and the revival of the economy will generate demand, and a marginal
cost tariff for incremental consumption will assist the industry. Incremental demand has grown
by 7%.
• Uniform tariffs will not be feasible when DISCOS are privatized.
• Industrial zones will be provided power to sell to their lessors.
• The government wishes all captive power users to switch to the grid. However, it recognizes
that this cannot happen due to the issues of power availability and reliability. Hence, the gas
price has been increased to bridge the gap vs. power tariffs.
• Initiatives are being pursued to shift from imported to Thar coal and to evacuate renewable
energy from the South.
• Battery storage for wind energy is being explored, as is the conversion of Thar coal to gas.
• The Pakistan Business Council could promote energy-efficient buildings.
• Marginal cost tariffs are under consideration for greenfield projects such as data centres and
mineral refining.
• The payback period for Net Metering will be revised to 4-4.5 years.
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Building Blocks For Pakistan’s $60 Bn Export Ambition

Panel Moderator: Ziad Bashir, Board Member, Gul Ahmed Textiles
R EC ENT EX A M P LES O F THE P BC' S
Musadaq Zulqarnain, Chairman, Interloop Limited

A DVOC AC Y ENGAGEMEN TS
Rizwan Diwan, CEO, Novatex Limited,
Jam Kamal Khan, Federal Minister for Commerce
$60bn Export Ambition

Key Takeouts
• With uncompetitive energy cost, higher than regional taxation and other disparities in
incentives vs. alternative sourcing countries, it is unrealistic to expect that the $60 BN export
ambition will be realized. Presently, there are no fiscal incentives for exporters.
• The imposition of advance/withholding taxes on exports has sapped the cash flow.
• There is significant untapped potential to diversify geographically to Africa and Central Asia.
Whilst some initiatives have been undertaken to obtain favourable market access to some
Central Asian countries, Africa remains a white space where our presence is negligible vs.
India.
• Notwithstanding our proximity to Central Asia, India far outsells us due to its relative strength
in the chemicals, pharmaceuticals, and engineering sectors. India is also able to compete
despite longer distances via Iran.
• The FTA with China needs to be renegotiated – the 45% duty-free access presently available
on paper is merely 14% when items we don’t make and China does not import are considered.
Similarly, the 75% promised by 2030 is only 24% when the same adjustment is made.
Bangladesh has negotiated duty-free access for 96% of HS lines without a FTA.
• The export regime for sectors other than the erstwhile zero-rated sector does not support
broadening the export basket.
• Provinces are imposing export cesses/infrastructure levies on exports at as high a rate as 2% of
value. This reduces export competitiveness.
• The country needs more export processing zones.
• Pakistan’s security conditions are not ideal for foreign buyers, and customers expect a discount
due to the higher risk they take when allocating orders.
• Labor-intensive and tariff-affected manufacturing can be attracted from China.
• The textiles industry needs to improve its value-addition and productivity to match Vietnam
and Bangladesh.
• Improving the cold chain and compliance with sanitary/phytosanitary/foot and mouth disease
standards will grow meat, seafood, fruits, and vegetables exports.
• Our Trade and Investment Counsellors need better training.
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A Case For Selective Import Substitution

Shabbir Diwan Chairman, PBC CEO Gatron Industries Panel Moderator
R EC ENT EX A M P LES O F THE P BC' S
Robina Ather, Former Chair, National Tariff Commission

A DVOC AC Y ENGAGEMEN TS
Irfan Chawala, CFO Archroma Pakistan
Abdul Qayoom Shaikh, CEO, Engro Polymer and Chemicals
Asif Jooma, CEO Lucky Core Industries

Import Substitution
Key Takeouts
• Import tariffs can be reduced by withdrawing the RD and ACD.
• There is a prima facie case for offsetting Pakistan’s higher energy and other manufacturing
costs through tariff protection.
• Protected sectors also provide much-needed employment.
• However, unconditional and indefinite protection discourages innovation and the upgrading
of production facilities, thus compromising the value (quality, cost) for domestic consumers
and failing to offer export opportunities.
• There is a stronger case for protecting sectors that utilize a significant percentage of local
inputs in their cost mix, such as agriculture and sectors reliant on locally available minerals and
other inputs.
• The case for protection is relatively weak for sectors that only marginally add local value to
mainly imported inputs.
• Pakistan should have an industrial policy defining the sectors of comparative advantage in
which scale can be achieved and protection justified.
• A criterion for protection should be the ability of an industry to gain scale and efficiency
comparable to the best in the world if the inequities of cost of doing business in Pakistan were
removed.
• Protection, when provided, should have a sunset clause to wean the industry off crutches.
• If, without compromising the value proposition of domestic consumers, an industry can utilize
its spare capacity to export, then a level of protection linked to the exports may be
considered.
• Anti-dumping duty is generally set at rates well below what other harmed countries levy. It is
also not collected due to stay orders granted by different high courts. Legal reforms are
necessary.
• Industries reliant mainly on imported inputs should be incentivized to indigenize.
• Cascading tariffs (low tariffs on raw materials, medium on intermediates, and high on finished
products) can provide a level of protection for domestic manufacturing.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
20

Promoting Forex-Accretive, Technology-Intensive Investment

Ali Khizar Director, of Research Business Recorder Panel Moderator
R EC ENT EX A M P LES O F THE P BC' S
Muhammad Azfar Ahsan, Former Minister of State Former Chairman, BOI

A DVOC AC Y ENGAGEMEN TS
Arif Saeed, CEO, Servis Group
Muhammad Ali Tabba, CEO, Lucky Group
Kamran Kamal, Mega Motor/BYD CEO, The Hub Power Company
Intensive Investment

Key Takeouts
• Business growth has been stunted since nationalization. The private sector has become
risk-averse, reliant on protection, subsidies, and government guarantees. No group in
Pakistan is capable of attracting a billion-dollar investment.
• Most large recent investments were in sovereign-guaranteed IPPs and energy terminals, some
in protected sectors like autos. New FDI has replaced outgoing FDI but not in export-oriented
sectors. Most of the current FDI and local investment is market-seeking, including in shopping
malls and retail outlets.
• There is now a realization that FDI should be directed at export-oriented sectors. However, the
policy framework is not differentiated from market-seeking FDI.
• Pakistan has attracted an average of about $2 Bn of FDI pa over the last 25 years. This pales in
comparison to smaller countries like Uzbekistan.
• New investment, local or FDI will not be forthcoming if existing investors are unhappy.
• Servis Group’s JV with the Long March of China capitalizes on US-China trade tensions and
restrictions. Due to the misuse of the Afghan transit arrangements, it finds it easier to export
to the US than sell in Pakistan.
• Bureaucrats lack sufficient understanding of the long-term benefits of investment.
• Like other countries, Pakistan should have benefited from the China+1 strategy.
• Security conditions and political instability are not conducive to investment.
• The tax regime does not promote scale; it allows the informal sector to flourish.
• Saudi Arabia can be a big source of FDI for Pakistan, but it has failed to attract good FDI from
Riyadh. The government is a bad matchmaker of the private sectors.
• Manufacturing, aviation, and hotels are not performing well. Land prices are unaffordable.
• On a positive note, some existing investors are turning to indigenization and exports.

Deputy Prime Minister’s Address

Senator Mohammad Ishaq Dar, Deputy Prime Minister of Pakistan, Minister of Foreign Affairs

Opportunities in Pakistan
Key Takeouts
The Deputy Prime Minister spoke about the economy instead of economic diplomacy.
• The opportunities far outweigh the challenges facing Pakistan
• We must resist the tendency to be negative. Pakistan has a positive growth trajectory
• Pakistan is a resilient country, and we have demonstrated that we can overcome adversity
• In 2013 Pakistan was facing an acute power shortage; we now have a surplus
• When the PDM government took over, we were facing a default. That is no longer a threat
• Pakistan remains relevant to the global community. We won the security council seat with an
overwhelming majority. We also hosted the Shanghai Cooperation Organization meeting
• The government has launched the Uraan Pakistan initiative
• Inflation and policy rates have declined
• We have a Rs. 1 Tr development budget
• We need to focus on the current account balance. The recent surplus is encouraging
• Remittances are up. We need to take exports up and avoid unnecessary imports
• The one-window SIFC will help the business resolve issues
• The government appreciates the formal corporate sector
• It hopes that the private sector will step forward and participate in the privatization program.
PIA and three airports are to be privatized.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
21

Equitable & Investment-Frendly Fiscal Regime

Panel Moderator: Ehsan Malik, CEO Pakistan Business Council
R EC ENT EX A M P LES O F THE P BC' S
Shabbir Diwan, Chairman, PBC CEO Gatron Industries

A DVOC AC Y ENGAGEMEN TS
Ziad Bashir, Board Member Gul Ahmed Textiles
Ali Pervaiz Malik, Minister of State for Finance, Revenue & Power
Arif Saeed, CEO Servis Group
Friendly Fiscal Regime

Key Takeouts
• Driving up the tax-to-GDP ratio, however desirable, should be the outcome, not the primary
objective of a sound fiscal policy.
• A sound fiscal policy should promote the growth of investment and business to expand
taxable revenue. It should also direct investment to quality growth, such as exports,
indigenization, formalization, and corporatization.
• A fiscal policy that is well integrated with trade, industrial, energy, and investment policies will
also help manage the twin deficits on the external and fiscal accounts.
• The government needs to right-size and bring down its expenditure.
• Pakistan had no choice other than to enter into an IMF program. It needs to meet all the
commitments, including the tax revenue target. The government appreciates the sacrifice of
the formal sector, which has been burdened with disproportionate taxes.
• PBC asked the FM to phase down the tax burden, prioritizing the export sector and listed
companies.
• PBC also suggested measures to broaden the tax base and level the playing field with the
informal sector.
• POS integration should be incentivized through lower GST
• Smuggling, misuse of the Afghan Transit Trade, and tax evasion, especially of a high 18% GST,
remain significant issues to tackle.
• Investment in plots is a major store of black money and needs to be discouraged further.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
22

Formalizing The Economy By Digitalizing Payments

Panel Moderator: Taimor Ali Group Head, Digital Financial Servicces, Karandaaz Pakistan
R EC ENT EX A M P LES O F THE P BC' S
Dr. Hamid Ateeq Sarwar, Memeber, IR - Policy Federal Board of Revenue

A DVOC AC Y ENGAGEMEN TS
Omer bin Ahsan, Founder/CEO Haball
Aamir Aftab, Chief Product Officcer JazzCash
Naeem Zamindar, Founder, Neem Global Advisor, Acumen

Digitalizing Payments

Key Takeouts
• 85% of the B2B transactions by value are via cash or cash checks, motivated by tax evasion
and business culture. Hence, these transactions are very foggy.
• Pakistan’s cash in circulation is one of the highest in the world.
• The supply chain in the B2B space needs to be digitized, with invoices and payments
processed immediately and inter-operably across banks.
• Banks are reluctant to finance because distributors and vendors don’t have transparent
cashflows. Digitalization can provide that.
• E-invoicing is an excellent substitute for collateral in financing. It provides banks with the
transparency they require to finance. Banks can also offer credit extensions to increase sales.
• RAAST P2M and JazzCash/EasyPaisa/UBank wallets should be extended to cover Kiryana
stores.
• G2P payments, such as BISP, are primarily handled in cash. People have to wait in long lines.
There is significant potential here.
• Once the value chain is digitalized, data can be used to provide insight into credit records and
be mined for tax compliance. Digitization can be a game-changer for the FBR.
• 70% of employees live paycheck to paycheck. Loans allow them to finance needs with dignity.
The credit history can be used to allow people to access greater credit. Digitalizing of
payments facilitates credit.
• FBR incentivized POS-integrated shops selling textiles and leather through a lower GST rate.
This encouraged many to join. Regretfully, it was withdrawn and should be reconsidered.
• Of the Rs. 280 Bn of E-Commerce transactions, the percentage digitalized is just 5%.
• Users of digital payments should receive tax incentives similar to those for using credit and
debit cards in restaurants.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
23

The Potential Of Agriculture – How Businesses Are Tapping It

Panel Moderator: Kazim Saeed, CEO Pakistan Agricultural Coalition
R EC ENT EX A M P LES O F THE P BC' S
Abrar Hasan, CEO National Foods Limited, Muhammad Aminuddin, CEO TPL Insurance,

A DVOC AC Y ENGAGEMEN TS
Muhammad Nassir Salim, President & CEO HBL, Zafar Masud, President Bank of Punjab,
Syed Yawar Ali, Chairman Nestle Pakistan, Dr. Zeelaf Munir, Vice Chair, PBC CEO, EBM,
Gen (R) Shahid Nazir, CEO, Green Pakistan initiative under the SIFC

Key Takeouts
• Agriculture has potential to address our current account deficit, provide food security for the
rising population, create prosperity in rural areas where the majority of people live, boost
gender balance, and deal with challenges of climate change and water use.
• With low per-acre yields in most crops, poor dairy output, weak cold chains for meat, seafood,
and horticulture, and a high degree of fruit and vegetable waste, there is significant scope for
improvement. Livestock is the largest component of agriculture.
• Genetic intervention, quality feed, and good animal care can radically improve the
productivity of cows as well as poultry. This also has scope for women to get involved. Nestle
and Friesland Campina are leading this. Commercial farming has also boosted dairy and
poultry yields.
• Import controls due to a shortage of foreign exchange led to National Foods indigenizing
tomato paste for ketchup. It studied the value chain down to the seed level to deliver export-
competitive products. The yield improved from an average of 9 to 24 tons/acre, and saved
$400/ton vs. import. NFL is now extending this to chillies.
• TPL is providing security to farmers through crop and livestock insurance. This includes yield
protection, as well as floods, etc.
• Banks are increasingly getting involved in funding and handholding farmers. HBL launched
HBL Zarai, which provides funding and advice to farmers. It is also using its global network,
including China and Kenya, to bring know-how on agriculture. HBL is also an investor in
Naymat Collateral which provides farmers loans against produce kept in safe silos.
• Cooperative farming, which benefited other countries, is sadly lacking in Pakistan.
• The Bank of Punjab has launched the Kissan Card with the Government of Punjab to fund
quality fertilizer and seeds to improve yields. 533,000 farmers, including women, have
enlisted. Digitization of land records helped block the sale of land to avoid defaults.
• Green Pakistan is a large-scale farming and livestock initiative based on mechanization and
involving both small-scale farmers as well as corporate farms. Focus is on 60 Mn acres plus the
4.8 Mn additional acres targeted for cultivation, the goal being to move to value-added
agriculture. Water efficiency is another objective and canals are to be built to distribute water
in line with provincial quotas. Machine rental on the Uber model is also planned.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
24

Lt. Gen. Sarfraz Ahmad, National Coordinator Of The SIFC

Lt. Gen. Sarfraz Ahmed, National Coordinator, Speccial Facilitation Council (SIFC)
R EC ENT EX A M P LES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
National Coordinator of The SIFC
Key Takeouts
• General Sarfraz appreciated the research-based advice the PBC has provided to the SIFC.
• SIFC was a one-stop platform for resolving issues that inhibited business. There was now a
system of speedy response to issues.
• The main focus of the SIFC is to improve the investment climate, especially to encourage local
investors.
• SIFC also recognizes the difference between good and bad FDI and prioritizes export-oriented
investment.
• Other areas of focus are:
• Revamp the energy, ports, and shipping sectors
• Prepare bankable projects
• Set up industrial zones through a leasing model
• Activate the Pakistan Sovereign Wealth Fund to leverage growth
• Focus on agriculture, mining, and mineral processing

Opportunities For Global Competency Centres And The Export Of Services

Saquid Ahmed Country MD, SAP Pakistan, Afghanistan, Iraq & Bahrain Panel Moderator
Nadeem Elahi, MD & Country Head The Resoure Group
Asif Peer, CEO & MD Systems Limited

Export of Services
Key Takeouts
• Human resources need to be developed in emerging sectors like AI and Cyber Security by
engaging specialist global training institutions for diploma courses that improve the
marketability of such resources. The government can play a catalyst role in developing talent
in collaboration with the private sector.
• Public sector should give local IT companies opportunities to provide IT services. A leap of
faith will help develop talent and expertise.
• KE provided Systems Ltd. the opportunity to implement SAP in Karachi, the fifth-largest city in
the world. Based on this, Systems is bidding for three utilities abroad.
• Large Pakistani groups should consider investing in IT businesses.
• Security conditions and quality and reliability of connectivity, especially for freelance workers,
are essential for IT and IT-based services. The perception is vital.
• With just 50,000 in call centers in Pakistan vs. 2 Mn in the Philippines, there is tremendous
scope for growth. Cost and quality of local resources is an advantage.
• One obstacle is physical infrastructure – rental costs and suitability of offices in KLI.
• There are six cables linking Pakistan, of which one is redundant. Demand for internet is
growing, putting pressure on bandwidth.
• Large MNCs need to be attracted to Pakistan to open back offices. Their success will spread
the word.
• In the ME, Pakistan does not suffer as much from poor perception as it does in the West.
Travel advisories impact perceptions. If only people could see Pakistan’s potential by visiting,
they would change their opinion. No airline flies directly between Pakistan and the West.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
25

Closing Remarks
Ehsan Malik, CEO, Pakistan Business Council
R EC ENT EX A M P LES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
Closing Remarks By CEO

We can take comfort from a high level of alignment on key objectives between the PBC
and the government. On many issues, this is the closest we have ever been. However, the
implementation record is poor.

On fiscal policy and the tax regime, the government accepts our stance that the only
sustainable way to achieve growth in the tax-to-GDP ratio is through policies that promote
business growth, primarily in sectors that address the external and fiscal accounts.

Many of PBC’s recommendations on making energy more affordable, reliable, available,

environmentally sustainable, and less reliant on imported fuel are accepted by the
government, and we should start seeing tariffs decline.

We registered the challenge of achieving the $60 Bn export target without supportive
policies.

PBC has been vocal on the need to avoid a mindless pursuit of market-seeking FDI. The
Finance Minister and the National Coordinator of the SIFC expressed their full alignment
on the need for export focus.

While opposing unconditional and indefinite protection and supporting outward and
competitive orientation of manufacturing, PBC advocates a differentiated approach for
sectors that rely significantly on indigenous inputs, such as minerals and agriculture or
others in which Pakistan has a comparative advantage and gain competitive scale. The
enforcement and collection of anti-dumping duties, needs to be strengthened.

We looked at three big opportunities – digitization of payments, agriculture and IT/IT-

based exports.

The common takeout from the sessions on geopolitical evolution and climate change was
that we need to fix our house and fend for ourselves. The session on population growth
and human capital was a wake-up call, with some useful recommendations for dealing with
this existential crisis.

I thank the 125 attendees and 30 speakers and panelists for participating in the Dialogue.
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
26

PB C ’S LET T ER TO THE P RIME MIN IS TER

O N T H E CO NC L U SI O N O F
R EC ENT EX A M P LES O F THE P BC' S
T H E D I A LOG U E ON THE ECO N O MY
A DVOC AC Y ENGAGEMEN TS

January 31, 2025

Mr. Shehbaz Sharif,

Prime Minister of the Islamic Republic of Pakistan
Islamabad

Dear Prime Minister,

We are writing to thank you and the members of your cabinet for generously listening yesterday to our
recommendations based on the key take-outs from the just-concluded “Dialogue on the Economy.” This
dialogue brought together many of our over 100 leading local and multinational members, who generate 40% of
the country’s exports and contribute a third of direct taxes.

Economic Stability
We congratulate you and your government on restoring economic stability. This hard-won achievement should
not be compromised by prematurely triggering growth before fundamental flaws in the economy are addressed
through reforms. Pakistan has had a sad experience on multiple occasions when import-led demand led to an
imbalance in the external account, resulting in repeated recourse to the IMF. Members of the PBC and others in
the formal sector have contributed disproportionately to help achieve the stretching tax revenue targets. We
hope that hasty growth stimuli will not waste our efforts.

Uraan Pakistan
Most of the “E’s” in Uraan Pakistan are part of the PBC’s advocacy. However, their implementation in the past
has been impacted by fragmentation between federal ministries and between the federation and provinces. We
are happy to see that this time, you will oversee the implementation with your usual passion and attention to
detail.

Exports
Exports are the most sustainable way to balance the external account. You have set a $60 billion target to be
achieved in three years. Impeding this admirable objective are regionally uncompetitive energy costs, higher
taxation, and the cash flow burden from withholding taxes. Whilst we are encouraged to hear the government’s
intent to reduce the cost of power, it may still leave a gap against tariffs prevalent in our South Asian neighbours.
The recent increase in the cost of gas for captive plants will not help either. We recommend comprehensive
benchmarking of the export incentives with our competitor countries.

Pakistan’s existing trade agreements, particularly the one with China, need to be renegotiated. Our market access
and trade representation in the 54 countries of the African continent pale in comparison to India’s. PBC has
shared the lessons from past trade agreements with the Ministry of Commerce.

Fiscal Policy and Tax Regime

We support raising the tax-to-GDP ratio. This should be done by promoting business and investment growth by
directing it towards exports and indigenization, encouraging formalization, corporatization, and listing of
companies, and broadening the tax base to include the untaxed and the under-taxed sectors. If, however, the
target of a higher tax-to-GDP ratio is attempted by taxing the already taxed, like the current budget, then it will
do the opposite of encouraging the growth of business. In this connection, we have met the Finance Minister and
the Chairman FBR and presented a phased plan to promote higher exports by current investors, encourage new
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
27

R EC ENT EX A M P LES O F THE P BC' S

A DVOC AC Y ENGAGEMEN TS
exporters and incentivize those presently reliant on imports to indigenize their inputs. We have also sought a
more favorable tax regime for the formation of groups by withdrawing multiple taxation of intercorporate
dividends, promoting investment in Private Equity and Venture Capital Funds, broader shareholding in listed
companies, incentives to list on the PSX and to hold shares for a longer period of time.

The formal sector has been acting as unpaid collectors of withholding taxes for some time, and it is in its interest
to continue to assist the government in broadening the tax base. However, it can’t take on the responsibility of
verifying tax compliance for the entire value chain of suppliers and customers. We have also shared several
proposals to broaden the tax base.

Import Substitution
PBC has consistently opposed unconditional and indefinite tariff protection for sectors for which Pakistan has no
comparative advantage; production facilities are dated and inefficient; there is a low likelihood of gaining
competitive scale; it is impossible to offer domestic consumers value comparable to imports or provide inputs at
a competitive cost for exporters. However, given the high cost of doing business and Pakistan’s poor infrastructure,
there is a good case for providing limited protection to offset this high cost to sectors that rely mainly on
indigenous inputs. An example is soda ash, which is used for manufacturing glass and detergents made from
locally available mineral deposits. We, therefore, suggest a differentiated approach linked to the quantum of
import avoidance and export competitiveness.

Following the levy of GST on local supplies to exporters, the latter prefer to import to avoid waiting for refunds.
As a result, the domestic industry faces closure. This needs to be rectified.

FDI
We are encouraged to note a broad agreement to focus on export-oriented FDI, which the PBC has been
advocating. However, the existing investment policies do not differentiate in favour of such investment compared
to market-seeking FDI.

Real Estate

We support a differentiated approach in favour of the formal construction and development sector, including
Real Estate Investment Trusts. The Chairman FBR had mentioned in the meeting that the undeveloped land, i.e.,
trading in plots, was suffering from high transaction costs and the government was reviewing these. We want to
remind that so does most of the formal sector from GST at 18%. Therefore, we recommend continuing attempts
to unearth black money locked in plots and to create a level playing field with the formal sector.

We assure you of our continuing support in the interest of what is good for Pakistan and remain available for
further engagement at your convenience.

Yours faithfully,

Ehsan Malik

cc: Mr. Muhammad Aurangzeb, Federal Minister for Finance & Revenue
Mr. Jam Kamal, Federal Minister for Commerce
Prof Ahsan Iqbal, Federal Minister for Planning, Development, Special Initiatives and Inter
Provincial Coordination
Sardar Awais Leghari, Federal Minister for Energy
Mr. Musadaq Malik, Federal Minister for Petroleum & Water Resources
Mr Ahad Khan Cheema, Federal Minister for Economic Affairs
Mr. Abdul Aleem Khan, Federal Minister for Board of Investment
Mr. Rana Tanveer Hussain, Federal Minister for Industries & Production
Mr. Ali Parvaiz Malik, Minister of State for Finance, Revenue & Power
Mr. Rashid Mahmood Langrial, Chairman FBR
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
28

Post- Sess
R EC ENT i on
EX A M eet
M P LES Oi F
ngTHE P BC' S
A DVOC
wi AC Y
th the P rENGAGEMEN
i me Minister TS
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
29

Events
R EC ENT and
EX A Mengagements
P LES O F THE P BC' S
A DVOC
wi AC Y
th K ey ENGAGEMEN TS
Stakeholders
In addition to the annual Dialogue on the Economy, the PBC organizes events to launch its studies, hosts
visitors from and calls on key stakeholders which include Ministries, Diplomatic Missions, Multilateral
Institutions such as the ones highlighted below:

IT Y ITY
vity Rep
ort ACT IVRT ACTIV RT
PBC Acti JUNE 202
3
Council
(PBC) for the
period
REPO zes the )
of
activities for the period R E P O of
rt summari Council (PBC
APRIL TO Pakistan
Business
This repo ness ivities
ies of the stan Busi s the act C) for
The Paki 24 marize
June 20
the activit
summarizes
ort sum uncil (PB iod
April - iness Co
This report
June 30,
2023.
This rep the per
April 1,
2023 to istan Bus
The Pak
5
2024-2

25
rch 20
y - Ma
Januar

Additionally, the PBC publishes a quarterly report of its activities and of the
media coverage of its advocacy which can be downloaded from its website:
https://www.pbc.org.pk/events-and-activities/quarterly-activity-reports/
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
30

C
R EC
ENENT
T ER O
EXFAEXCE
M P LES
LLEN
O FCE
THE
I N P BC' S
RES
A DVOC
P O NSI
AC BLE
Y ENGAGEMEN
BU SIN ES S TS

As Pakistan’s premier business body composed of the largest and most successful businesses in the
country, the PBC recognized in 2016 the need to share and spread the best practices on responsible
business conduct. As an outreach initiative to grow and strengthen the formal sector, at the same time
enhance PBC’s credibility and relevance, the PBC established the Center of Excellence in Responsible
Business (CERB).

PBC’s CERB leverages global and local best practices to inculcate a change in mind-set among
businesses including small and medium-sized enterprises. It also conducts awareness sessions and
shares tools to uplift capacity and capability of businesses to meet the UN Sustainable Development
Goals.

C ER B'S V ISIO N

To be a multi-sector business coalition assisting Pakistani enterprises to pursue

sustainable value creation in the short, medium and long-term.

C ERB' S M i S S i O N

To engage with businesses and To leverage private sector growth for

industry leaders and enable the inclusive development, poverty
transformation towards the conduct reduction and sustainability guided by
of responsible business in Pakistan. the UN Sustainable Development
Goals (SDG) framework.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
31

R EC ENT EX A M P LES O F THE P BC' S

A DVOC
CERB comprises ofAC YResearch
Online ENGAGEMEN
& Innovation Initiative andTS
two inter-dependent business units.

O N LIN E R ES E AR C H AND
I N N OVAT ION IN IT IATIVE

This will be developed as an online research portal with a determined effort to integrate the business
research community with industry to develop world class research to support CERB’s strategic
objectives outlined in its Mission.

ET H ICS , VALU E S AND

GOVE R N AN C E FORUM

This forum promotes responsible practices which strengthen the formal sector in pursuit of sustainable
value creation.

I N C LU S IVE AN D S U STAINABLE
DEVELOPMEN T FORUM

This forum focuses on generating livelihoods, promoting women’s empowerment and decoupling
growth from its impact on the environment.
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
32

R EC ENT EX A M P LES O F THE P BC' S

CER B’S O U TCO M ES
A DVOC AC Y ENGAGEMEN TS
The Pakistan Business Council (PBC) acknowledges the critical role of fostering best practices in
responsible business conduct to promote growth within the formal sector. To this end, in 2016, the PBC
launched its first outreach initiative, the Centre of Excellence in Responsible Business (CERB). This
initiative was designed to enhance the capacity and capability of businesses across Pakistan. CERB
draws upon global and local best practices to inspire a fundamental shift in the mindsets of businesses,
including small and medium-sized enterprises (SMEs).

CERB envisions a landscape where responsible companies extend their focus beyond operational
boundaries, striving for more inclusive and sustainable systems that have the power to transform
business culture. Its mission is to support businesses in this journey by establishing transparent
frameworks that evaluate their performance in areas such as gender-equitable workplaces,
environmental stewardship, ethical conduct, and decent work across their entire value chains, both
upstream and downstream.

Notably, CERB has facilitated engagement with executives from over 250 companies through a robust
program of more than 60 webinars, 100 workshops and events, in addition to conducting
comprehensive market research, and in-depth case studies. It has further amplified its influence through
initiatives like the Employer of Choice Gender Diversity Awards, the SDG Leadership Programme, and
the Creating Livelihoods Summit, reflecting its unwavering commitment to advancing sustainable and
responsible business practices.
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
33

PB
R EC
C ENT
' S COM
EX A
MMI TTE
P LES
ES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
Taxation
Ziad Bashir
Gul Ahmed Textile Mills Limited
Director

Agriculture
Energy
Abrar hasan
Ruhail Muhammad
National
Lucky Foods Limited
Power
CEO
CEO

Exports
Khwaja Muhammad Anees
Masood Spinning Mills Limited
CEO

Agriculture
Abrar hasan
National Foods Limited
CEO

IT/Digitalization
Asif Peer
Systems Limited
CEO
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
34

MEMB
R EC ENT
ER SH
EX A
I PMCPRLES
I T ERIA
O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
The PBC is neither a trade nor a representative body for a specific industry. It does not advocate sector
and industry specific issues; instead, its advocacy thrust is on improving the general business
environment of the country. Currently, there are two categories of membership open to companies:
Executive Membership, which is the primary category and Associate Membership which is presently
limited to businesses in the knowledge, professional and emerging economy. The financial criterion,
Joining Fee and Annual Membership Fee have been relaxed for Associate Members, recognizing that
the main resources these deploy in their operations are human and intellectual capital rather than
physical assets involving sizeable financial investment. Meeting the qualifying threshold, financial or
other, for either category of membership is not a guarantee for acceptance; companies desirous of PBC
membership need to indicate their interest and thereafter be invited to join the PBC. The ultimate
decision on membership is of the Board and the reputation of the business and its sponsors carries the
heaviest weight. The authorized representative of businesses admitted into membership is invariably
the Chairman / President / CEO / MD / Country Head / Senior Partner etc., to retain a high quality of
contribution to PBC’s objectives. However functional heads may represent members on its various
committees.

EXEC UT i VE M EM B ER S H i P

Executive Members are private sector businesses registered and operating in Pakistan, with substantial
investments and long-term commitment to the growth of the private sector. To ensure quality of
membership, the qualifying threshold for this category has been kept high to maintain a sharp focus on
medium to long term policies aimed at achieving sustainable growth. It is estimated that no more than
approximately a hundred existing private sector businesses in the country can potentially
qualify for PBC’s Executive Membership. Already, over 90% of such businesses have recognized the
value of PBC’s role and have joined as Executive Members. In the last four years, the membership has
doubled in numbers.

The current qualifying threshold for Executive Membership for a non-financial sector company is to
meet two of four criteria: Rs. 1 Bn in either i) shareholders’ funds, ii) net fixed assets or iii) current assets
or iv) annual turnover of Rs. 5 Billion. Qualifying thresholds are for individual or group holding
companies. Paid-up capital and fixed assets of commonly-owned companies outside a group structure
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
35

R EC ENT EX A M P LES O F THE P BC' S

Acannot
DVOC AC Y ENGAGEMEN TS
be clubbed together for meeting the qualification criteria. Companies in the financial sector
must meet the minimum capitalization levels and other criteria set by their regulators.

To further ensure participation of only serious businesses, the joining fee and the annual subscription
fee for this category of membership have effective July 1, 2022 been kept at premium levels of Rs. 3
Million and Rs. 2.5 Million respectively. Half the joining fee is payable on admission, the balance on the
following July 1. The annual fee is payable on each July 1, while companies joining during the year are
required to pay the annual fee on a pro-rata basis.

Executive Members have voting rights and can nominate candidates to stand for election to the Board
of Directors. Currently the Board comprises 14 elected directors. The 15th member is the CEO.

Affiliates
Executive Members may upon payment of an additional annual fee of Rs. 500,000 propose group
companies (as defined in generally accepted accounting principles) to be admitted as Affiliates.
Affiliates do not enjoy voting rights reserved for Executive Members.

ASSO C I AT E M EM B ER S H I P

In opening the membership to the knowledge/emerging economy and professional services, the PBC
recognizes the need to include these rapidly sectors in its research and advocacy. However, such
businesses which meet the financial criterion for Executive Membership will not qualify for admission as
an Associate Membership. Furthermore, businesses admitted as Associate Members would be required
to pay the differential of fee when they grow in size to qualify for Executive Membership.

The new category of Associate Membership is open to businesses in the knowledge/emerging econo-
my which presently are unable to meet the financial criteria for Executive Membership. The Sharehold-
ers’ Funds and Fixed Assets criterion have been removed. Instead, to qualify for application as an
Associate Member, a business must either belong to the IT or IT-enabled services sector, Venture
Capital or be a provider of professional services, such as legal, accounting and consulting. The size
threshold is as follows:
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
36

R EC ENT EX A M P LES O F THE P BC' S

IT/IT-Enabled Venture Professional
A DVOC AC Y ENGAGEMEN
Services TS Funds
Capital Services

Annual Turnover N/A N/A Rs. 1 Bn

Sales generated through Rs. 5 Billion per N/A N/A

portal/call-centre/back office annum

Employees on own payroll 50 N/A 60 for Law firms

150 for all other services

Indirect Employees (for 5,000 N/A N/A

digital intermediaries e.g.
“Captains” for Uber)

Annual Payroll Cost Rs. 100 Mn N/A Rs. 300 Mn

Years Established/Operating 3 1 10
in Pakistan

Evidence of tax filing Yes Yes Yes

Funds under management N/A US$ 5 Mn N/A

The Joining and Annual Fee for Associate Membership is also set at a reduced rate of Rs. 500,000 each.
Annual Fee is prorated in the year of joining. Joining Fee is payable on application.

Associate Members do not have the right to vote or nominate candidates for election to the Board of
Directors.
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
37

PB C ENT
R EC 'S DIR
EXEC
ATO
M PRLES
S O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
Dr. Zeelaf Munir Muhammad Arif Habib
Chairperson PBC Director
English Biscuit Manufacturers (Pvt) Ltd Fatima Fertilizers Company Limited
Managing Director and CEO

Ziad Bashir Mohammad Ali Tabba

Vice Chairman Director
Gul Ahmed Textile Mills Limited Lucky Cement Limited
Director

Yousaf Hussain Mohamedali R Habib

Director Director
Faysal Bank Limited Indus Motor Co. Ltd.
(House of Habib)

Taimur Dawood Danish A Lakhani

Director Director
Descon Engineering Limited Colgate Palmolive Limited

Syed Hyder Ali Azam Faruque

Director Director
Packages Limited Cherat Cement Company Limited

Samir Chinoy Abdul Samad Dawood

Director Director
International Industries Limited Engro Holdings Limited
Vice Chairman

Saira Awan Malik Ehsan A. Malik

Director CEO
TCS (Private) Limited The Pakistan Business Council

Rizwan Diwan
Director
Gatron (Industries) Limited
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
38

PAS
R ECTENT
C HA
EXI RAMMEPNLES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS

Razak Dawood Asad Umar Ali Habib

Then Chairman Descon Then CEO Engro Corp Then Chairman Indus Motors

Sikander Mustafa Khan Bashir Ali Mohammad Atif Bajwa

Then CEO Millat Tractors Then Chairman Gul Ahmed Textiles Then President Bank Alfalah

T H E PA K I S T A N B U S I N E S S C O U NTCHI LE -PAP KRIO

STFA
I LNE B U S I N E S S C O U N C I L - P R O F I L E

Mohammad Ali Tabba Syed Yawar Ali Saquib Shirazi

PBC ' S D I REC

Then CEO Lucky Cement
TO
PBC R 'SS D I R EC
Then Chairman Nestle Pakistan
TO R S
Then MD Atlas Honda

Muhammad Aurangzeb Muhammad Aurangzeb Syed Hyder Ali

Director PBC
HBL HBL Packages Limited
President & Chief Executive Officer
President & Chief Executive Officer
CEO

Muhammad Aurangzeb Shabbir Diwan

Shabbir
Then President & Chief Executive Diwan Shabbir
Then CEO, Gatron Industries Diwan Syed Yawar Ali
Officer HBL
Director PBC
Gatron (Industries) Limited Gatron (Industries) Limited Nestlé Pakistan L
Director Director Chairman
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
39

A B OENT
R EC UT THE EX APMBC P LES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
The PBC is a private sector business policy advocacy forum composed of Pakistan’s largest businesses /
groups including multinationals that have a significant investment in and a long-term commitment to the
growth of Pakistan. Members turnover represents every sixth Rupee of Pakistan’s GDP and together the
members contribute 25% of tax revenues and 40% of exports. More information about the PBC, its
members and its activities can be found on our website www.pbc.org.pk

PB C M EM BER CO M PAN IES

T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
40

R EC ENT EX A M P LES O F THE P BC' S

A DVOC AC Y ENGAGEMEN TS
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
41

T
R he PB C EX
EC ENT A ffi
A MlPi ates
LES O F THE P BC' S
A DVOC AC Y ENGAGEMEN TS
n
e org lop m
y re & h
c m
e a
ci ls

n
e org le n
e yg m
ret n
i al n
e org lop m
y re & h
c m
e a
ci ls

n
e org le n
e yg m
ret n
i al

n
e org lop m
y re & h
c m
e a
ci ls

n
e org le n
e yg m
ret n
i al
 T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
42

T
R he PB C EX
EC ENT M embers
A M P LES O F THE P BC' S
A DVOC
and i tsAC
AY ENGAGEMEN
ffi TS
li ates by S ector
PBC currently has 95 members and 10 affiliates whose businesses cover nearly all sectors of the formal

economy. The sector wise representation (in alphabetical order) is detailed below:

Large-Scale Manufacturing
20
18
18

16
14
14 13

12 11

10
8
8

6
4
4 3
2 2
2 1

0
Agro Cement Chemicals Energy Engineering Fast Moving Packaging Pharmaceuticals Sports Gear Textiles
Industries / Fertilizer Consumer Material and
Goods Healthcare

Services
14

12
12

10

6 5

4 3 3

2 1 1 1 1 1 1

0
E-Commerce Financial Hospitality Insurance Logistics / Real Estate Software Telecom- Utilities Conglomerates
service Courier Developers munication
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
43

R
34ECM
ENT
NC’ S
EX A M P LES O F THE P BC' S
A
F ROM
DVOC1 AC
4 COY ENGAGEMEN
U NT R IES TS

USA
USA

UK
UK

UAE
UAE

Switzerland
Switzerland

Japan
Japan
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 09
44

R
34ECMN
ENTC’SEX A M P LES O F THE P BC' S
A
F RO
DVOC
M 1 AC
4 CO
Y ENGAGEMEN
U NT R IES TS

Netherlands
Netherlands

France
France Bahrain
Bahrain

SouthKorea
South Korea Hong Kong
Germany

Germany
China Sweden China

Sweden
Turkey Turkey
T H E PA K I S T A N B U S I N E S S C O U N C I L - P R O F I L E 24

8th Floor,
8th Floor, Dawood
Dawood Center,
Centre, M.T.
M.T. Khan
Khan Road,
Road,
Karachi, Pakistan
Karachi, Pakistan
T - + 92 21 3563 0528 - 29
F - + 92 21 3563 0530
T - +92 21 3563 0528 - 29
F - +92 21 3563 0530
2nd Floor, 1-E (South) Jinnah Avenue,
www.pbc.org.pk
Blue Area, Islamabad, Pakistan
T - + 92 51 8444 008
F - + 92 51 8444 009

www.pbc.org.pk