Daily Times

Sir: It is heartening to note that over the years the government of Pakistan has been offering numerous valuable incentives to accelerate industrial growth and economic revival in the country. Most of these initiatives promise big benefits for the essential industrial sectors. However, weak strategies, poor execution and delays may sometimes reduce the advantages, or may even create challenges for the industry and consumers.

The ‘PM’s Trade Enhancing Incentives recently announced a package of Rs 180 billion, to quell the declining trend in exports. Through this package, sales-tax and custom-duties have been abolished on the imports of textile machinery, cotton and man-made fiber, along-with duty-drawbacks on sports goods, leather and footwear industries. However, these incentives may prove to be counter-productive due to some complications associated with export-subsidies and duty-drawbacks. This package gives an unfair advantage to the big players. The smaller players, with a smaller market-base in foreign countries, end up as losers, because they are not eligible for these incentives. Hence, most of these industries have not been able to reverse the declining trend in exports. Another example of weak execution is; the recent subsidy announced for the fertilizer industry in the National Budget 2016-2017.

As an industry professional, I personally believe that the subsidy is a great gesture from a government to provide relief to its masses. But in order to get fruitful benefits from such schemes, government should also devise simple and swift processes to pass on maximum advantage to the ailing industry. We know that the agriculture sector form the backbone of Pakistan’s economy. Therefore, Government priorities should be circled around transforming the supporting industry and farming community in the best possible manner.

AMMAR MUZAFFAR

Via Email