LAHORE: The Federation of Pakistan Chambers of Commerce and Industry’s Businessmen Panel (BMP) has said that the caution of the International Monetary Fund (IMF), Fitch and Moody’s Rating Agencies have also consistently been raised by the business community, urging the authorities that instead of passing on the blame to the previous governments’ miss-governance a serious and sustained attempt should be made to strengthen the economy, slashing current expenditure and raising revenue from direct taxes which still account for less than 35% of all projected collections as per the budget 2022-23.
Businessmen Panel (BMP) Chairman and FPCCI former president Mian Anjum Nisar suggested the government to use the available monetary policy tools wisely, stressing the need to adopt a holistic approach aimed at developing all economic, agricultural and industrial sectors in order to support the growth of the country.
He said that there is a need to devise a comprehensive strategy to promote the industry on immediate basis which will not only support the manufactures but also increase our export. He hoped that the government would pursue radical economic reforms through a long-term stable administration.
Instead of doing the usual there is need to raise revenue from those having ability to pay or, in other words, from direct taxes which as per the budget 2022-23 account for less than 35 percent.
The BMP has been suggesting to the government to undertake major current expenditure cuts that require a major sacrifice from major recipients as well as reforms in all major sectors.
These measures would not only decrease the pressure to generate higher revenue from indirect taxes like petroleum levy, also decreasing the need to borrow externally which is estimated at 36 billion dollars this year alone that in turn would reduce debt servicing costs.
He demanded the government to offer special package of power and gas tariffs for rapid industrial growth on the pattern of China. As a result of high tariffs and taxation, cost of production is increasing and cannot compete in global market thus badly hampering export substantially.
Moreover, it is essential to have an agricultural policy that increases the supply of raw material to agro-based industries, both domestic and foreign, such that it can help domestic textile producers regain lost competitiveness in the world market.
Copyright Business Recorder, 2022
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