Chambers and federations of commerce and industries across Pakistan have rejected the Pakistan Tehreek-e-Insaf (PTI) call of 'Civil Disobedience Movement' against the government. The representatives of the business community and economists have shown serious apprehensions over PTI chief Imran Khan's call for civil disobedience, saying that it would have a far-reaching adverse impact on country's economy and its image in the comity of nations.
Talking to Business Recorder, representatives of different chambers of commerce, business community and economists have termed the call of civil disobedience untimely and inapplicable. They further said the news of civil disobedience has badly hurt country's economic prospects.
Talking to Business Recorder here on Monday, ex-President Karachi Chamber of Commerce and Industry (KCCI) and prominent leader of Karachi Businessmen Group Mohammad Zubair Motiwala said that such an unconstitutional act would not be accepted by the business and trade community of the country. Pakistan cannot afford or sustain unconstitutional acts such as 'civil disobedience.' The call for such kind of movement is ultra vires to the Constitution of Pakistan which is not acceptable.
He further said that business community is completely against any action which is not in the ambit of the Constitution such as 'Civil Disobedience Movement' announced by Pakistan Tehreek-e-Insaf (PTI). Motiwala expressed pessimism over country's export prospects following Imran's call for civil disobedience. He apprehended that the export orders may be shifted to other countries like India in view of current situation.
Noted economist Dr Salam Shah said the announcement of Pakistan Tehreek-e-Insaf (PTI) Chairman Imran Khan to launch a 'Civil Disobedience Movement' against the government is not practicable. The 'Movement' would have zero impact on the economy as such movement cannot be implemented or enforced. Such kinds of movements would not have any impact on the economic activities in the country. Firstly, most of the taxes collected in Pakistan are deducted at source. Indirect taxation like sales tax and Federal Excise Duty (FED) collection are being deducted at source on many items/commodities. Similarly, withholding taxes are also deducted at source. Secondly, sales tax collection under the current taxation regime has been done under a proper mechanism. Within the supply chain a proper tax deduction system is in place for collection of sales tax from manufacturing till end supply chain. Sales tax collection cannot stop in reaction to a political statement of 'Civil Disobedience Movement'. In the present situation, business and trade cannot be restrained from depositing taxes already deducted at source.
At the same time, if you will not pay utility bills like electricity, the concerned department would cut the power supply to the residential or commercial units, he added. Dr Shah said it is a political statement of Imran Khan and that it cannot be implemented. Therefore, such statements would have a zero-impact on the economy. Sakib Sherani, ex-Principal Economic Adviser at Ministry of Finance, said it is a very negative and irresponsible move of the PTI. It is potentially dangerous move by the PTI as it is against their agenda. At a crucial time when the government is making serious efforts to reduce losses of state owned utilities of Pakistan and increasing the tax base, their call has very large unintended consequences. In practical terms, such kinds of calls send negative signals across the world, which may lead to fiscal anarchy.
The sliver lining is that it is a highly impracticable step and even PTI members cannot afford not to pay utility bills or GST because it is built-in in price of the goods people purchase. At the same time, it also gives a negative signal to the largely non-taxpaying population. Such situation gives a justification to non-taxpayers. The arguments of the non-taxpayers of not paying taxes would be strengthened by calls of 'Civil Disobedience Movement', Sakib Sherani added.
President Islamabad Chamber of Commerce and Industry (ICCI) Shaban Khalid said that PTI call would negatively affect country's image and business activities. Business community has rejected Imran's call. Khalid added: "when government announced initiation of dialogue with the long and Azadi marchers, then there was no need of such call." President Rawalpindi Chamber of Commerce and Industry (RCCI) Dr Shumail Daud Arien said the call of 'civil disobedience' will affect foreign direct investment (FDI) and exports of the country. Many people who were scheduled to come to Pakistan for their business have cancelled their programs, said Arien. He further said that many exporters would be unable to meet their demands.
President Khyber Pakhtunkhwa Chamber of Commerce and Industry Zahid Ullah Shinwari said the civil disobedience call would paralyse growth; revenue target would be missed while budget deficit would widen. Replying to a question, Shinwari said that attraction of FDI is next to impossible while local investors were also on their back foot due to deepening uncertainty in the country.
He further said the industries are shut for the last 10 days as raw materials are not available while export consignments have failed to reach ports. Kashif Anwar, vice president Lahore Chamber of Commerce and Industry, also rejected the PTI call for civil disobedience saying that they would pay taxes as part of their duty to play their role in the development of the country.
He further said that besides the financial losses a great damage was done to the national image and it would take a long time to recover these losses. Anwar further said it takes a long time to get electricity or gas connection once disconnected by not paying bills. Further, the non-payment of taxes would result in suspension of the tax numbers and it will take months to get national tax numbers reactivated.
Engr. Suhail Bin Rashid Sheikh President, Faisalabad Chamber of Commerce and Industry (FCCI), informed Business Recorder that the business community has totally rejected the "irresponsible" statement of the PTI for 'Civil Disobedience Movement'. "On behalf of business community of Faisalabad, we categorically reject the statement of Imran Khan and PTI should immediately withdraw its call for 'Civil Disobedience Movement'. The business community would continue to pay duties and taxes to the national kitty," Engr. Suhail Bin Rashid Sheikh added.
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