Govt needs to reduce annual import bill by $8 bln to support economy: PBF

Author: inp

President, Pakistan Business Forum (PBF) Khawaja Mehboob ur Rehman has demanded of the government to set up a committee under the chairmanship of a tariff commissioner, who will be responsible for identifying items that, if not imported for one or two years, do not impact the Pakistan economy. As we need to reduce our (annual) import bill by $8-10 billion.

Talking to a delegation of Solvent Extractors Association which called on Monday, he said the import of such items could be curtailed by several measures such as imposition of 100% cash margin, quantitative restrictions, prohibitive tariffs or outright banning their import, if required.

Khawaja Mehboob ur Rehman further asked the incumbent government to work on a fast track plan to address expansive energy issue and priority should be given to the value-added industry and agriculture in this regard.

The core issue of the business community was the high cost of doing business, which the government needed to bring down to bring the local as well as the export industry at par with global competitors, he maintained.

The PBF President urged for increasing ease of doing business, lowering cost of production, paying early refunds to solve liquidity crunch, relaxing import policy for industrial raw material, and equalizing the energy tariff across the country. He said Pakistan was at 147 out of 190 countries on the global ranking of doing business mainly due to bureaucratic hurdles. Currently various provincial departments, including EOBI, Social Security, Women Welfare, Environment Department were playing a negative role and treating the manufacturers and exporters.

Khawaja Mehboob ur Rehman called for giving a boost to the export sector by adopting diversified marketing techniques and extending practical support to the industry, and asked the exporters to prepare themselves for meeting the global challenges so that exports could be enhanced by fully exploiting new opportunities. He also stressed the need for adopting new technology so that Pakistan’s exports may be able to cope with the emerging challenges in international arena.

He further said Pakistan’s new economic growth strategy should address five crucial areas: privatization, attracting foreign direct investment, phasing out subsidies to public-sector enterprises, breaking down domestic cartels and fostering free trade.

In the 1990s, New Zealand’s labour government carried out a comprehensive privatization programme covering energy, telecommunications, and public enterprises. Additionally, Malaysia achieved success in privatizing utilities, transportation, and telecommunications sectors. These examples provide valuable models for emulation.

Similarly South Korea, Taiwan, Malaysia, Indonesia, Chile, Singapore, and Costa Rica all demonstrate the economic prosperity achievable through promoting free trade. Pakistan and India being close neighbours with immense potential, are poised to gain significantly from increased trade and regional economic integration. For Pakistani companies, this translates to accessing a vast Indian market of over 1.4 billion consumers, leading to potential sales growth and economic expansion. Open trade with India would also grant Pakistani businesses access to advanced technologies and expertise readily available in India, further propelling their growth.

On the recent FBR notification for shopkeepers and small traders into tax net, he said Pakistan Business Forum supports the Federal Board of Revenue (FBR) compulsory tax regime for retailers and wholesalers in major cities of Pakistan, As Pakistan annual requirement is Rs 12 trillion and we are still shortfall of Rs 3 trillion however we hope through this taxation regime of traders our tax collection will increase.