Pakistan computer assembling industry has been struggling for its survival due to continued chargeability of general sales tax at local assembly stage, for which budget makers require corrective measures to avert possible closure of the industry.
Bashrat Boluch, Chairman of Pakistan Computer Association (PCA), said this during a meeting with representatives of IT business community here on Tuesday.
He said that improved security situation, efficient economic policies and development projects in all sectors, including the historic CPEC were indicators of positive policies of the government. Likewise, he said, friendly business environment in the country was also attracting large number of foreign investors in the country.
However, he added, the steps on part of government towards local assembling and manufacturing of Personal Computers (PCs) were far less than required. The sector required key structural reforms to remain viable and for local assembly to flourish, raw material & inputs have to be zero-rated at all stages of the product life cycle such as the import stage to sales stage.
The IT community representatives on the occasion highlighted that before the year 2005, a number of local assemblers emerged on the scene to enrich the PC industry in Pakistan. This created a healthy environment for the assembly, manufacturing, testing, supply, repair and maintenance of IT products in Pakistan. As a result, the locally assembled products helped in saving valuable foreign exchange; reducing dependency on imported goods and to create employment opportunities for enterprising youth and innovators, they added.
The industry representatives suggested simplification of tax regime for the acceleration of opportunities as well as creation of employment in the country. Thus, the government needs to come up with tax exemption to the local assembling industry, at least for a period of five years. The step would help in jobs creation, development of higher level of skills and saving of foreign exchange as well as in reduced reliance on foreign countries and revival of industry & association of quality with local products, they concluded.
Bashrat Boluch, while showing agreement with the community members, said that the countries across the globe have observed transformation impact of their economic indicators due to local manufacturing. Pakistan has the potential to replicate these models provided the government was coming up with immediate corrective measures to save the industry and to allow it make important contribution in the national economy, he said.