Import ban to hit IT sector: Smuggling, use of informal channels to get a boost: PCA

ISLAMABAD: The government’s decision to impose a ban on import of non-essential items under the “Emergency Economic Plan” would also affect the IT sector, resulting in massive smuggling and use of informal channels of trade and evasion of duties and taxes.

Founder Chairman Pakistan Computer Association (PCA), and Chairman IT committee, Islamabad Chamber of Commerce and Industry (ICCI), Munawwar Iqbal, said this while talking to media on Tuesday on the possible impacts of banning imports in the sector.

He said that the curbs on imports under “Emergency economic plan” would open the doors for massive smuggling and thus, not only a loss to the national exchequer but also damaging to the already business environment which was already marred by multiple factors.

The IT industry would also suffer due to this decision. The government of Prime Minister Shehbaz Sharif must revisit the decision keeping the larger interest of the country as well as the business in the country.

Iqbal said that the business and industry were expecting some supportive measures from the new government for the growth of the economy. However, instead of offering any relief to the industry, the new announcement would lead it to further chaos.

He added further that the IT Industry is being considered a backbone of the economy all around the world but in Pakistan, the industry is grappling with numerous challenges that are adversely affecting its growth.

Now banning IT-related accessories would not only lead to an increase in smuggling it would also result an increase in the non-documented economy, black marketing, and corrupt practices at many levels. The quality of services would also get impacted and for instance, headphones which are used by call center etc., the non-availability of quality products will affect the quality of services and lose the call centers business which means loss of foreign revenue.

“Imposing ban on the import of 38 non-essential luxury items in general would largely affect the public consumers of domestic kitchen items as well,” said Iqbal and added that the ban will consequently encourage large scale smuggling and hoarding and create shortages of these items in the country. The government, therefore, should have taken the business community on board before announcing this decision keeping the negative consequences of it in view.

Copyright Business Recorder, 2022