Traders on Friday urged the government to scale back tax rates, increase energy provision, restore peace and reform the poor taxation system to help their access to world markets in financially viable terms. Talking to Business Recorder, Chairman All Karachi Tajir Ittehad (AKTI), Muhammad Atiq Mir, said "the uneven taxation policies, energy crisis and poor law and order are key factors that hinder the export growth".
He, however, appreciated the government for its policies that helped attain duty-free access to EU markets, which, he hopes, will help local business atmosphere improve as well. He said the energy shortage and poor law and order situation largely contributed to a persistent decline in manufacturing sector of the country, in Karachi specially. "Once the tax reforms are carried out, law and order improves and energy crisis is controlled there will be a big change, production level will go higher that will create job opportunities as well". he hoped.
Atiq Mir said that government policies should aim at restoring confidence of local and international investors with a view to increase business opportunities to underpin the ailing economy. Though the country's products are of world standard, the uneven taxes and other factors make these unviable on global markets, he said. "The government should provide incentives to the investors for setting up factories for value-added products," he demanded, saying the world has transformed into value-added manufacturing which provides opportunity to the local producers as well to capitalise the global demands.
He said, "the traders will always support the government for a balanced trade between Pakistan and India". He warned the government of severe consequences if it initiated trade with India without well thought preparations. "The unbalanced trade with India will desolate the country's small and uncompetitive manufacturing units. It will cause a huge financial crisis and manufacturing sector will collapse," he said urging the government to complete the spadework before signing any agreement with India for trade.
He said the country's local markets are already flooded with the smuggled Indian goods causing big loss to local importers of such products. "Those who pay taxes should be provided financial protection and smugglers should be put behind the bars," he appealed.