The business community Wednesday widely hailed Prime Minister Imran Khan's financial relief package worth around Rs 1.2 trillion to ward off the negative impact of coronavirus on the country.
Central Chairman United Business Group (UBG) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) and SAARC CCI president-designate Iftikhar Ali Malik while reacting to the PM's economic relief package appreciated the relaxation given to the electricity consumers, allocation of Rs 200 billion funds for the labour community and Rs 100 billion tax refund to the industrial sector.
He said the decision to reduce the prices of petroleum products by Rs 15 per litre would provide a considerable relief to the common man. He also appreciated the assurance of prime minister that there should be no obstruction in supply of edible items and medicines and every possible step should be ensured on the administrative level to avert hoarding so that nobody might take undue advantage of the situation.
Commenting on the State Bank of Pakistan's decision regarding reduction of policy rate by 150 basis points to 11 percent, he maintained that the 150bps rate cut announced by the SBP was not enough to cope with the lockdown-like situation, adding the industry was expecting a massive reduction in interest rate. "The interest rate should be below 10 percent and the payment of utility bills needs to be deferred for the industry," he added.
He said the mechanism that would be adopted by the Ministry of Finance for speedy implementation of the relief package would determine the outcome of the government's policies.
He also suggested the government to tackle the most essential issues of ensuring ease of doing business, reducing the cost of doing business, accelerating growth, inducing investment, concentrating on human skills, tapping resources, generating employment, and deconstructing the unproductive tax system which imposes high taxes, but yields low revenues.
Iftikhar Malik also suggested the government that marriage halls may be used as quarantine centres due to shortage of hospitals. In return, government should give 3-year tax holiday to the owners of marriage halls. He also urged the government to implement same electricity tariff for all industries. He said the government had given a tariff of 0.75 percent to the textile sector. Same tariff should be given to all industries to bring down their industrial input cost, he added.