The government will unfold numerous measures in relation to ease of doing business and reduce taxes on investment in the Finance Supplementary (Amendment) Bill 2018 to be tabled in the parliament this month with major good news for stock market, announced Federal Finance Minister Asad Umar, here on Saturday.
"The finance bill, to be tabled on January 23, will focus on two economic aspects: ease of doing business and investment to reverse the structure of economy that unfortunately has been turned into a consumption-led economy over the years," he said while speaking at a reception at Karachi Chamber of Commerce and Industry (KCCI). However, he hastened to add that the import-based consumption in particular would not be given incentives.
He said that economy is purely a business of private sector while government's job is to create conducive environment for it. He said that his Pakistan Tehreek-e-Insaf had shaped that economic vision and created a body on ease of doing business that Prime Minister Imran Khan himself heads.
The Finance Minister also spoke on promotion of intra-regional trade, citing Prime Minister's foreign visits. He said that Pakistan and Turkey agreed on Pak-Turkish Strategic Trade Framework, on which working has begun. He hoped Prime Minister Khan and Turkish President Erdogan would sign it in April this year. He said the government also wants to enter into similar agreements with Iran and Afghanistan as well.
He said that the current political environment in India has stopped the Indian government to positively respond to the offer of Prime Minister Imran that he made in his maiden speech for peace and tranquillity in the region. He hoped that India would respond to this offer soon and disclosed that Pakistan Army fully supports the government initiative to move forward on various issues, including trade with India.
"Economic diplomacy is the cornerstone of new government's foreign policy that has begun yielding results," he said, adding that Saudi Arabia would be announcing a major investment in Pakistan in coming days and the Kingdom would not restrict merely to few billion dollars deposits.
Answering a question, the Finance Minister said the government is focusing on short-term operational planning and five-year strategic planning to tackle the gas crisis that has hit Karachi's industries hard. He blamed the previous government for not implementing the plans related to gas supply.
"Our government inherited various sectors debts amounting to rupees 2000 to 3000 billion, including a rupees 800 billion circular debt in power sector and also the billions of rupees sales tax refunds," he said, adding that in order to repay the debt, a two-pronged plan has been chalked out. One-third of the debt would be paid in cash while two-thirds through negotiable instruments, he said.
Umar said that the government would complete all the legal requirements for these negotiable instruments by end of the current month. He added that this step is likely to be implemented by February 15 next.
He claimed that his government has performed better than the previous governments.
"Now the change in taxation will be done through parliament not through SROs," the Finance Minister said.
Speaking at the Federation of Pakistan Chambers of Commerce and Industry, the Finance Minister said a committee has been formed to give legal structure to border trade from Balochistan. The legal structure will be finalized soon to promote border trade from the province.
To compete in the international markets, there is need for availability of utilities, better tax structure and technology support, he said. "We are focusing on resolving all these issues but it will take time," he added.
He said his government is taking measure for ease of doing business. "In the Finance Bill scheduled to be tabled in the parliament, we will announce various measure for ease of doing business," he maintained.
The government also wants to promote small businesses in the country.
He said private sector has important role in the country's economy. He asked the private sector to come forward to promote economic and trade activities and to increase the country's exports. The government will play its role to facilitate them.
He accepted there are some issues in the clearing system for imports and exports. The government is working to upgrade automation system, he said and added that work on National Single Window Project has been initiated where all the data will be updated that will help ease the system.
Earlier, FPCCI President Engineer Daroo Khan, Senior Vice President FPCCI Dr Mirza Ikhtiar Baig, State Bank of Pakistan Deputy Governor Qazi Abdul Muqtadir, business leader S M Munir and others also gave their suggestions for improvement of business and trade in the country.