Initiating a “Pakistan First” approach on the lines of “America First” will help in strengthening the domestic industry and in invigorating stakeholders, as stated by the Pakistan Business Council (PBC).
In a letter addressed to the Prime Minister Nawaz Sharif, PBC mentioned that on the back of improved security situation, political and economic stability, and immense investments in infrastructure under the CPEC has set the foundation for strong future growth.
A properly branded and targeted campaign is required to build on gains in the wake of a global recession, a wave of protectionism, rising oil prices, volatility in the Middle East and the vulnerability of remittances.
The council is of the opinion that these objectives could be achieved by arresting the “premature” de-industrialisation of the country’s industry. With the right policies, there is no reason why the domestic industry cannot gain scale and become competitive, the council further said.
PBC rues that Pakistan’s exports consist of commodities rather than value-added exports, which fosters an increase in jobs and earns more foreign exchange. Cohesive industrial, trade, agriculture, labour and fiscal policies are required to create a level-playing field for value-added exports, by preventing exports of primary commodities, and by automating rebates and refunds.
For widening the tax base, the Federal Board of Revenue (FBR) should be facilitated with appropriate technology and trained personnel. The PBC added that the transaction tax on non-filers should be increased and not so that the FBR can collect revenue through a withholding agent.
PBC also suggested discontinuing the presumptive tax regime and FBR’s oversight should be limited to collecting taxes only, and not allowed to formulate a tax policy. This leads to the setting up of short-term revenue-oriented goals instead of long-term goals that ensure a good health of the economy, the council concluded.
