Jamaat-e-Islami has proposed 23 measures to create additional fiscal space for the government. The party estimates annual savings and resources could reach Rs. 3.102 trillion.
The proposals aim to prevent another increase in the petroleum levy on consumers. They focus on government spending, energy reforms, taxation, and monetary policy.
Jamaat-e-Islami has proposed changes to the pricing system for locally produced petroleum products. It estimates that import parity pricing reforms could save Rs. 120 billion annually.
The party has also suggested importing crude oil instead of finished petroleum products. It estimates that this step could provide additional savings of Rs. 185 billion each year.
JI has called for an independent audit of refinery upgrade fees and related charges. It argues consumers should not pay again for refinery upgrade costs.
Government Spending Reforms
The party has proposed reducing federal government expenditures and eliminating unnecessary spending. It also wants some federal responsibilities transferred to provincial governments.
According to the proposal, these measures could generate annual savings of up to Rs. 949 billion.
Jamaat-e-Islami has also recommended reducing the federal Public Sector Development Program. It has proposed lowering the program from Rs. 1 trillion to Rs. 800 billion.
The party has further suggested removing projects that overlap between federal and provincial governments. This could reduce duplication in public development spending.
JI has also called for cuts in non-development and luxury expenditures. It has highlighted reforms identified by the World Bank.
The party estimates these World Bank-related reforms could generate federal savings of up to Rs. 1.1 trillion annually.
Monetary and Debt Measures
Jamaat-e-Islami has proposed raising the State Bank of Pakistan’s cash reserve requirement. It has suggested increasing the requirement to 15 percent.
The party estimates this measure could generate annual savings of around Rs. 448 billion.
JI has also proposed reducing the policy rate from 11.5 percent to 9 percent. It estimates that this could reduce interest-related expenditure by about Rs. 100 billion.
Power Sector Reforms
The party has called for an audit of remaining Independent Power Producer agreements. It has also proposed renegotiating expensive terms in these agreements.
JI estimates that power sector reforms could produce annual savings of up to Rs. 400 billion.
The proposals are aimed at reducing financial pressure in the energy sector. They also seek to limit additional costs for consumers.
Tax Collection Measures
Jamaat-e-Islami has proposed closing the Federal Board of Revenue’s tax gap. It estimates that this could generate up to Rs. 3.4 trillion in additional revenue.
The party has also suggested withdrawing most tax exemptions. It would retain exemptions for food, health, education, and defense.
JI estimates that this measure could raise between Rs. 250 billion and Rs. 350 billion annually.
Overall, the party wants the government to create fiscal space through structural reforms. It argues that spending cuts and higher tax collection can reduce pressure on consumers.
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The proposals seek to provide alternatives to increasing the petroleum levy. Jamaat-e-Islami says reforms across key sectors can improve government finances without adding another burden on consumers.
