PBF leader raises questions over amnesty scheme for industrialists

ISLAMABAD: Vice President of Pakistan Businesses Forum (PBF) Ahmad Jawad said that the government’s recently announced scheme for the industrialists by offering them to whiten their black money at 5% rate by investing in the manufacturing sector is another shift to create imbalance in the society.

Talking to Business Recorder, he said that the amnesty, no questions asked as to the source of funds was available twice before but neither of these schemes attracted anticipated investment.

“Today, the government has laid down a wrong foundation. How any government can ask the businessmen to set up industry and they will not ask any question. The government can give tax concession for some period but straightaway giving a liberty isn’t appropriate,” he added.

Jawad was of the view that what the government really needs to do is to provide the required infrastructure and offer affordable electricity and gas to industries. It also needs to cut the bureaucratic tape and facilitate a safe and secure environment for investors.

He maintained that just by granting amnesties, no major industrialization had taken place in the country in the past.

Jawad further stated that Prime Minister Imran Khan has been a strong proponent of anti-corruption for at least 20 years and whenever any previous government announced an amnesty scheme for investors, he was fairly critical as such schemes encouraged black money circulating in the economy to be whitewashed and accepted as kosher.

The scheme of incumbent government allows investors to put their money into new industries that means absolutely no questions asked if the money was legally earned or siphoned off from somewhere or even if it has been smuggled into the country.

“It is true that investors need incentives for industrialization as the country’s economy cannot forever depend on its agriculture sector. The government should also keep in mind that its ostensible focus on accountability does not go in consonance with such leeway offered to investors whereby they are exempt from any accountability on their past earnings,” he continued.

Jawad also expressed the fear that from new amnesty scheme selected business houses will get benefited. “Arms and ammunition, explosives, sugar, cigarettes, aerated beverages, flour mills, vegetable ghee and cooking oil industries are likely to avail the new tax amnesty scheme.”

He suggested instead of amnesty, Prime Minister should have taken steps to appreciate the rupee and the dividends will be much broader for the country as Pakistan’s industry suffered a lot due to higher depreciation of the rupee in its 3.5 years.

He also urged FBR to call off all SROs whose are companies-specific and provide level playing field to business community.

Copyright Business Recorder, 2022