Former Vice President (VP) Federation of Pakistan Chamber of Commerce and Industry (FPCCI), Mohammad Adnan Jalil has called for giving big importance to SME sector and adopting of workable policy for upcoming entrepreneurs, easy access to credit tax rebates and one-window operation.
Talking to this scribe, he called for the promotion of IT industry to make it the economic backbone by bringing foreign investors in this sector to the country. He called for easy access to the e-gate or electronic payments, liberalisation into the State Bank of Pakistan rules and regulations in opening of the foreign currency accounts. He called for hiring of true professional from the IT industry to strengthen IT ministries and boards.
He said that at HDI (Human Development Index) we have performed poorly, touching 150th rank, GCI (Global Competitiveness Index) stands at 107, CPI (Corruption perceptions index) at 117, Ease of Doing Business stands at 147, Our Governance Index has improved from 82nd percentile to 77th percentile in 2015 and on Inclusive Growth and Development we are placed at 47th. Tremendous improvement required in all the indexes. Will, sincerity, hard work and honesty is desperately needed if we want to see a prosperous Pakistan.
He stressed need for the use new/latest technologies in harvesting and to promote our agricultural sector, laser guided technology in marble/granite sector, setting up advanced technologies for polishing gems and jewellery.
He said that SMEDA and SME Bank can play utmost important rule by making feasibilities and arranging desired/advance trainings as required by the entrepreneurs. In this connection, he especially lauded the role played SMEDA Khyber Pakhtunkhwa chapter in the form of ERKP (matching grant) from the World Bank for new and existing businesses who have suffered due to war on terror/manmade disaster which affected businesses.
Mohammad Adnan Jalil, who is a graduate from the United Kingdom and working on the boards of various organisations, has proposed the merger of SME Bank with SMEDA, which has a severe equity problem and low rating and is still on the privatisation list.
He is of the opinion that funding from the donors plus their own deposits generated by SMEDA from their own resources can solve to some extent the bleak situation of the SME bank. Federal government should provide funds to the bank for all their programmes such as Insaaf Rozghar Scheme, PM youth programme and others. Equity erosion at SME bank is highly alarming, urgent steps are needed for the bank's revival.
He has also demanded the simplification of taxation system and introduction of fixed taxes for new small/medium businesses, reducing sales tax to a single digit preferably between 5-7 percent, rational income tax and abolish all unnecessary taxes like Levy Tax, FED, WHT, Advance Tax and others. Expansion of the sales tax categories to all sectors excluding medical and educational sectors, revisit the rupees devaluation. No more burdens of new taxes on the existing/new tax payers. Formulation of upcoming budget should be more realistic and practical rather than just a fiddling of the number game.
Role of business chambers should be more realistic based on their research and development and modern techniques. Policy frame work should be for all, not for individuals. Strong liaison with international chambers and charter of business with the government, long term vision and policies should be placed despite any change in the government.
He said that transfer of technology should be the core of national business policy and top priority to national interest especially when it comes to game changer CPEC. Our industries should be protected and 90 percent employment in the upcoming CPEC projects must be given to Pakistani. Collaboration on JVs in which SME sector must be given prime importance, formation of the EXIM bank will be an ideal for Pakistan. Opening up bank branches in each other country, more air link with China from other major cities of Pakistan.