SAARC Chamber Senior Vice President Iftikhar Ali Malik Friday said the country's business community reposes full confidence in the dynamic leadership of Prime Minister Imran Khan and much optimistic that the incumbent government has full potential and firm commitment to drive the country out of present economic crisis.
A group of leading businessmen called on Prime Minister's economic advisor Abdul Razzaq Dawood and discussed in details the possible solutions of the economic crisis and role of business community for supporting the government's economic policies to bring back the country on the track of economic prosperity.
Iftikhar Malik said that higher exports are the only solution to get the country out of this crisis. It is the only way that can help repay debts otherwise the country would never be able to get out of the debt trap and would have to take fresh loans to service the principal amount and interest of the actual loans which is already over $93 billion.
With a view to increase exports, the government has to address major odds hurting our industry and exports such as high cost of doing business, availability of energy: both gas and electricity, at an affordable price as compared to our regional competitors, adequate supply of raw cotton, timely payment of Sales Tax and Income Tax Refunds to avoid liquidity problem, rupee-dollar parity, shortage of skilled manpower, lack of institutional support and infrastructure facilities, he added.
He said construction of five million houses will give impetus of economic activities in the country but pumping investment in real estate sector is not a solution to the complex economic crisis as there is dire need too to invest in production oriented sectors to boost the exports of the country. He said immediate challenge is the balance of payment situation, which should be addressed by reducing imports and increasing exports of the country. The government should devise a plan to reduce the imports by $5 to $6 billion and enhance the exports by at least two billion dollars to reduce the trade gap, he added.
Malik said the government should take several measures for enhancing tax net to increase revenue, with the consultation of all provisional stakeholders. "The mobilization of domestic resources through reforms in taxation is essential to ensure sustainable financing of development as government would not depend on foreign loan," adding he said steps should be take to simplify tax structures, and slashing personal tax rates to encourage more people to file returns, he said.
He said Pakistan has a very narrow tax base and successive governments have promised to rein in tax evaders and boost revenues but they failed and he hoped that the present regime under leadership of Imran Khan has launched a mega drive against tax evaders which is appreciable. "The government can immediately generate up to Rs300 billion by making these tax evaders pay Rs100,000 each in a deal by plugging sales tax evasion, amounting to 35 percent, government can further generate Rs250 billion," he suggested.
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