KARACHI: The progression of five export-oriented sectors, including developing industrial sectors, would face negative economic impact if the government could not put in place a framework to ensure 100 percent utilisation of the local industry, business people have opined.
The government’s steps protecting local industrial sectors including textile, garments, tanning, sport goods, surgical, carpet, marble and onyx, jewellery, construction and other developing sectors would be vital for the survival of country’s exports and local manufacturing, they have stressed.
In order to fetch economic benefits from China Pakistan Economic Corridor initiative, the industries should be given due share in the projects, they have maintained.
Chinese investors were being given massive tax relief on imports as well as other economic relieves too many segments of manufacturing sectors.
There was a need of a comprehensive policy to be announced to protect the local industry.
It could only be possible if our industrial sector is provided equal opportunities and this would help in boosting our exports.
The government has allowed Chinese investors tax-free imports and thousands of acres of land was also being allotted free of cost to them for a special industrial zone.
Like such incentives to Chinese, government should also not ignore country’s industry for such benefits otherwise a negative economic impact would prevail on local industrial sector.
Agha Saiddain of tanners, Ghulam Rabbani of cotton, Sanaullah Khan of marble, Jawed Bilwani of garments, Arif Yousuf Jeewa of construction, Anjum Nisar of business panel and others have said country’s major exports have been on declining trend since long due to higher cost of doing business, utilities, meager duty relief on value-addition imports, higher taxation as compared to regional competing nations like Bangladesh, India, Taiwan, Sri Lanka and Thailand etc.
Businessmen Panel of Federation of Pakistan Chambers of Commerce and Industry has also demanded the government for equal opportunities to Pakistanis in CPEC projects.
“There is no doubt that projects of CPEC would boost the economy of Pakistan and active role being played by Chinese investor will be a good sign for progress of Pakistan. But at the same time government should take concrete steps to protect local industries.”
Published in Daily Times, December 27th 2017.