President of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has urged the government to take the advantage of low oil prices and take benefit of low cost electricity to overcome the electricity shortfall to enable the industries run at capacity production.
He was speaking at a meeting of All Pakistan Chambers of Commerce and Industry at the Regional Office here on Wednesday. He said that energy crisis is a major contributing factor to the slow economic growth rate by negatively impacting Pakistan's already meager economy. Electricity is a basic requirement for the economic development and for an adequate standard of living of a country. Pakistan though, having the potential to meet its energy needs, has remained unable to utilise its indigenous resources to overcome the energy crises.
Apart from internal political differences among federating units for the development of indigenous resources, there are many other hurdles, like lack of foreign investment, a precarious security situation and weak economy, which have hampered progress in the energy sector, he added.
He said that the Prime Minister Mian Nawaz Sharif has expressed his confidence over the new management of FPCCI and tasked them to devise the strategy for economic revival of the country during 2015. He further said that the FPCCI will closely work with its member bodies and will provide them all possible assistance, co-operation and guidance in resolving their trade related issues with the government and other concerned agencies as well.
FPCCI Regional Chairman Khawaja Zarar Kaleem said that FPCCI will play vital role in enhancing the bilateral trade and economic activities of Pakistan with rest of the world and will give a comprehensive vision to the government and the business community as well that how the economic co-ordination can lead to strengthen economic ties between other countries.
He said that there are various government policies which discriminate the status of commercial and industrial importers. He said that both are doing same business and should be treated equally in tax mechanism. The commercial importers ultimately consume/supply imported raw material to the industry particularly SMEs. He drew the attention of the President FPCCI pertaining to audit. He informed that commercial importers are paying 17 percent GST and three percent value addition tax at import stage. This value addition tax was imposed to provide exception for audit. Now government has unilaterally removed the exception which is highly unjustified. The exception clause should thus be restored, he maintained.
Earlier, FPCCI Regional Chairperson Balochistan Fehmida Kausar Jamali while talking to Business Recorder urged the government to take steps for the revival of woollen mill at Harnai that was known of producing best quality of woollen cloth for the export purpose. She further said that 25 percent of industry in Balochistan has been closed mainly because of the energy crisis. About the law and order situation, she said that it is not only Balochistan province but the entire country is facing law and order problem and government must take immediate steps for bringing peace in the whole country.
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