The Pakistan Industrial and Traders Associations Front (Piaf) has urged the government to announce a special incentive package in the forthcoming budget for the revival of business activities and steps to give boost to the country's exports so that Pakistan could be able to undo the negative affects of the global economic recession.
In its budget proposals, Piaf Chairman Irfan Qaiser Sheikh said on Friday that continuous supply of electricity to the industry, satisfactory law and order situation and cut in cost of doing business were the few areas, which should be given priority in the budget. He also suggested creation of a special fund to deal with the losses suffered by the importers because of delay in clearance.
The genuine taxpayers should be issued privileged cards for the encouragement of other taxpayers. To increase the country's export, he stressed the need for slashing duties on raw materials for the export-oriented industry. He said that high mark-up needed to be brought down to single digit as it would not only increase industrial productivity, but would help increase local investment in the country.
The banking spread that had crossed the figure of seven per cent should also be reduced in the larger interests of the trade and industry, he said, adding that the limit of income tax exemption must be enhanced from Rs 100,000 to Rs 300,000 and the income tax on cash withdrawal from banks should be reduced to 0.2 percent and threshold be increased from Rs 25,000 to Rs 50,000.
As the country was facing a number of external and internal pressures, the Piaf leader demanded of the government to curtail all non-productive expenditures to the minimum level so that the funds could be utilised for the betterment of people. He said the government should also announce austerity drive in the budget and all the government functionaries, entitled to use official vehicles, should be directed to use small vehicles and their fuel consumption limit should also be fixed.
About law and order situation, the Piaf leader said that there was a dire need to allocate special funds to strengthen intelligence network in the country as the previous happenings had proved that police alone could not handle any untoward incident.
He also urged the government to evolve both short-term and long-term policies to overcome the shortage of electricity, and added that the local businessmen could be asked to make investment in power sector jointly or individually. He expressed concern over the closure of operations by a large number industrial units, and warned that many were on the way to closure.
The uninterrupted supply of electricity to the industry would not only increase industrial production, but would also arrest the fast galloping unemployment graph, he said. He said the government should immediately start work on Kalabagh Dam, which had been politicised for nothing. The dam, on completion, it would not only expedite economic activities, but would also ensure cheapest electricity, he added.
Irfan Qaiser Sheikh said that there was a dire need to promote research culture in the country as despite having all the resources, the country was lagging far behind in every sector only because on non-availability of required information. "Our neighbouring countries are progressing leaps and bounds, but we are fast losing our due place in the global market," he added.
He said the existing rate of general sales tax (GST) was very high and it seemed prohibitive for economic growth, therefore, it was strongly recommended to reduce it. As pharmaceutical sector, which was fulfilling local demands as well as earning precious foreign exchange for the country, thus the customs duty on raw material of life-saving drugs should be reduced to five percent and the sales tax on packing material and locally manufactured raw material should be withdrawn. He also urged the government to announce a cut in petroleum prices and their fixation for at least one year.