ISLAMABAD: Terming illicit trade as a major issue for documented sectors, State Minister for Petroleum Musadik Malik has stressed on documentation of the economy for generating legitimate revenue to move towards sustainable growth.
Dr Musadik Masood Malik, the State Minister Petroleum Division said this while speaking at the launch of a research report by Oxford Economics, UK on the positive economic impact of the PTC on Pakistan’s economy.
The Pakistan Tobacco Company Limited (PTC) celebrated its 75th year of operating in Pakistan by hosting an event to launch a report developed by Oxford Economics.
Without documented economy we will not be able to contribute to legitimate revenue, he said and appreciated the efforts of PTC to raise awareness of the illicit cigarette trade.
Later talking to media, he said the prime minister had refused to increase petroleum prices without a relief plan for the poor people, having monthly income of Rs18,000 to Rs20,000. The government has prepared three alternate plans for the targeted subsidy for the poor people of the society. These plans would be submitted to the Prime Minister for approval. One of the proposals is to give relief to the motorcycle owners, public transport and BISP beneficiaries. The government will respond to the queries of the IMF on petroleum subsidy during the upcoming talks, he added.
Addressing the function, Musadik Malik said that multinational companies had contributed to finding out talent and training the youth to make Pakistan better and stronger.
While speaking at the occasion, he acknowledged the economic and social contributions made by the company in the last 75 years. He stated that PTC had contributed more than Rs450 billion in FED and GST revenue in the last five years to the country’s economy. He recognised the threat by the illicit sector and acknowledged that success of a track and trace system depended on across the board implementation and effective enforcement. The minister announced that all legal and enforcement machinery at the government’s disposal would be used to ensure that eradication of illicit cigarettes was realised.
Speaking on the occasion, the Group Head of International Trade & Fiscal Affairs for BAT- Donato DelVecchio shed light on two significant investments in Pakistan. The first, setting up of a tobacco-free nicotine containing oral manufacturing plant that is a global centre of excellence for developing, manufacturing, and exporting BAT’s portfolio of reduced risk new category Products; secondly, the establishment of BAT’s New Global Business Services hub. Together, these investments account to more than USD 45 million injected in Pakistan’s economy.
CEO & MD PTC, Ali Akbar, quoted the report and commented that in 2021, the company contributed PKR 133 billion in total taxes to the national exchequer, becoming one of the largest taxpayers in the country. The Company embarked on its Made in Pakistan journey for exports in 2018 and last year alone, 37.2 million dollars’ worth of product was also exported from Pakistan.
Over and above this tax contribution, PTC’s traditional business and its value chain made a total contribution of Rs122 billion to Pakistan’s GDP in 2021 and the company generated over 76,000 direct, indirect jobs and induced jobs.
Copyright Business Recorder, 2022