ISLAMABAD: Jamaat-e-Islami Pakistan Emir Hafiz Naeemur Rehman on Wednesday called for sweeping economic reforms, including tax relief for salaried individuals, lower electricity, gas and fuel prices, and the termination of costly Independent Power Producer (IPP) and re-gasification agreements.
Seminar on Budget and Economy
Addressing a seminar titled "Budget, Economy and Energy: From Crisis to Solutions" in Islamabad, attended by economists, energy experts, tax specialists and senior journalists, he urged the government to use the upcoming budget to provide immediate relief to the middle class and ensure stable utility prices for the coming years.
Proposed Tax Reforms
Naeem proposed abolishing income tax on monthly salaries of up to Rs125,000 and reducing tax rates by 50 per cent for higher-income salaried groups. He also called for cuts in electricity and gas tariffs and demanded that petrol prices be reduced to Rs230 per litre.
Criticising the country's tax structure, he said ordinary citizens bear the bulk of the tax burden through direct and indirect taxation. According to him, the salaried class contributes Rs605 billion annually in income tax, while consumers continue to pay heavy petroleum levies and utility taxes.
Attack on IPP Agreements
"The government is squeezing the common man while paying around Rs2 trillion annually to IPP owners," he said, adding that expensive energy contracts have become a major burden on the national economy. He called for a forensic audit of IPP agreements, claiming it would expose major irregularities involving current and former rulers.
Rehman also criticised re-gasification contracts, alleging that payments continued even when gas supplies remained suspended. Warning against plans to enter into additional power purchase agreements, he said Jamaat-e-Islami would oppose any move to sign new contracts for 26,000 megawatts of electricity generation.
Demands for Energy and Education
The JI chief also demanded the immediate commencement of work on the Iran-Pakistan gas pipeline project, increased spending on education, stronger local governments, taxation of large landowners and greater support for small farmers.
He alleged widespread corruption in the Benazir Income Support Programme (BISP), claiming that poverty levels had risen despite years of spending under the initiative. He further called for increasing the education budget from the current 1.7 per cent of GDP to at least 4 to 5 per cent.
Expressing concern over the country's education crisis, Naeem said nearly 27.5 million children are out of school nationwide, including around 10 million in Punjab.
Opposition to Privatisation
Responding to questions from journalists, he criticised the government's privatisation policy and reiterated Jamaat-e-Islami's opposition to the sale of state-owned institutions. He said the party had prepared a comprehensive policy paper outlining alternatives to privatisation.
He also called for reforms to the pension system and said all state institutions, including the judiciary and military, should be subject to the same standards of accountability. While opposing cuts in defence spending, he suggested reviewing administrative expenditures within the military budget.
People-Centred Economic Model
Naeem said Jamaat-e-Islami's economic agenda includes eliminating interest-based financing, strengthening the zakat system, investing in education and promoting vocational training for youth. He maintained that only a people-centred economic model could help Pakistan overcome its recurring fiscal and energy challenges.
