One-year performance celebrated: Miftah lauds government's strong economic policies

Celebrating a year of strong economic performance by the federal government, Dr Miftah Ismail, Special Assistant to the Prime Minister and Chairman of the Board of Investment (BoI) highlighted that GDP growth has accelerated to 4.1 percent, with plans to raise GDP growth to 16 percent, eliminate unemployment and raise the income of the common man in 2016.
Speaking at a dinner hosted by Rashid Ahmed Siddiqui, Founder Chairman of the Karachi Business Forum and a prominent businessman, Dr Ismail also lauded the government's efforts to keep the inflation rate in single digit at 8.7 percent, and decrease the national deficit from 8.8 to 5.9 percent. Additionally, the BoI Head also remarked on the government's success in increasing the country's Forex reserves from 7.8 billion dollars to 13.44 billion dollars, with plans to further increase foreign reserves to 20 billion dollars by September 2014. The dinner, held in honour of Dr Ismail and his role in the country's economic resurgence, was attended by a host of prominent leaders in the business and commerce sectors.
Dr Ismail also spoke on the government's efforts to address the issues facing the masses, and highlighted the government's role in increasing funds for the Benazir Income Support Programme (BISP). Stared under the auspices of the previous PPP government with Rs 34 billion in funding, the programme grew to Rs 40 billion during their five-year tenure. Under the incumbent government, the funding allocated for BISP has increased to Rs 75 billion in the previous budget, with an allocation of Rs 97 billion in the 2014 budget.
The BoI Chairman also discussed efforts to broaden the country's historically-low tax net, explaining that 745,000 taxpayers filed tax returns, out of the 3.3 million NTN-holding taxpayers in the country. To combat this, 90,000 notices have been issued to taxpayers who did not file returns. Additionally, increasing taxes on property purchases and business-class airfare, as highlighted during the recent budget presentation, is aimed at broadening the tax net and increasing national revenues. To encourage foreign investment in Pakistan, the government has also announced that income rates for companies with more than 50 percent foreign equity will be reduced from 35 percent to 30 percent for the next five years. Additionally, further tax incentives have been announced for companies investing in Balochistan, Gilgit-Baltistan and Kohat, while a total tax exemption on inputs will be given to companies in Fata.
Dr Ismail also highlighted the role of the government in addressing the country's crippling energy shortage, with the aim of bringing loadshedding close to an end. To this end, with the support of former President Asif Ali Zardari, work has accelerated on electricity generation projects utilising Thar Coal, estimated to be worth Rs 9 trillion. The government also hopes to generate 1330MW from the Port Qasim Power Plant in 2017, in addition to new power projects in Punjab and the Gadani Power Park and accelerated work on Basha Dam.
The BoI Chairman also appreciated the support of the Chinese government in the Sino-Pak Economic Corridor, saying the programme would be worth around 34 billion dollars. Following visits between the Pakistani and Chinese leadership, an agreement has been reached to establish the corridor from Gwadar to Kashgar, and to provide Chinese assistance in producing power from Thar Coal and Port Qasim Power Plants. Additionally, the Chinese will also show their commitment to Pakistan through their support for the Karachi-Lahore Motorway, Karachi-Gwadar Motorway and Gwadar-Ratodero motorway.
Also speaking at the event, S M Muneer, Chairman of the Trade Development Authority of Pakistan (TDAP) highlighted the confidence of international investors in Pakistan, citing the continuing strong performance of the Karachi Stock Exchange, as well as the oversubscription of a USD 2 billion Euro Bond by the State Bank of Pakistan recently.-PR