KARACHI (PR) - The Overseas Investors Chamber of Commerce and Industry (OICCI), in its review of the federal budget 2008-09, said that it is heartening to see that most of the OICCI recommendations vis-a-vis the policy direction have been considered and efforts have been made to broaden the tax base and also to provide relief to lower income class, however, all these efforts will remain ineffective if implementation remains weak. The budget laid heavy emphasis on addressing imbalances and targets for the forthcoming year, which appear conservative. The fiscal deficit is targeted at 4.7% from the current year's 7.8%. On the whole, OICCI believes that the focus of the policy is in the right direction. Also, the targets for GDP growth, inflation and forex reserves appear to be achievable even under the challenging circumstances likely to be present over the upcoming fiscal year.  Importantly, the government has not shied away from tough decisions in some areas such as reducing the oil subsidy, which is expected to phase out by end of the current year. However, OICCI is disappointed with the government's decision to continue with high corporate tax rate which makes Pakistan uncompetitive within the region and taxes on account of Workers Profit Participation Fund (WPFF) and Workers Welfare Fund (WWF) which increases "cost of doing business" thus making products less competitive with importers. The OICCI proposed elimination of WPFF in its entirety or its utilization through a fund for the benefit of workers to build schools, hospitals etc. Similarly, Federal Excise Duty is still being levied on basic consumer products, which the OICCI proposed should be removed. "The above measures may affect the investment climate and with the introduction of tax on Provident Fund contributions, it will be difficult to retain talent in the country," said Waqar Malik, President OICCI. Moreover, there is a need to aggressively broaden the tax base further and reduce mounting burden of tax payers. On expenditure side, greater allocation for education, skill development and health is required while non-development expenditure needs to be reviewed carefully. OICCI remains concerned about the potential for slippage given an ambitious revenue target and political considerations in execution of difficult decisions related to hiking of oil and food prices.  Therefore, the government should demonstrate consistency and transparency in policies and a consultative approach for foreign investors in the country.  Greater emphasis is required on policy implementation if inflation is to be controlled in the long run.