ISLAMABAD: To boost exports, Pakistan needs to focus on information technology, engineering and chemical sector said business tycoon, Abdul Razzak Dawood on Wednesday.
The Pakistan Business Council (PBC) on Wednesday organized a Fourth Economic Forum which saw participation from various several economic pundits and corporate heads.
They suggested the government to work on decreasing current account deficit by diversifying exports, streamline tax structure and rolling over foreign loans, reported a leading English daily.
Business tycoon and ex-commerce minister Abdul Razak Dawood stated relevant authorities were repeating the same mistakes of the 1990’s by levying regulatory duties on raw materials. He added regular changes in duty structure of imports, should not be carried out.
Dawood stressed businessman shouldn’t need to request for special statutory regulatory orders. He said reaching export target of $100 to $200 billion was improbably with sole dependence on cotton and textile
Ex-governor State Bank of Pakistan, Dr. Ishrat Hussain in his remarks voiced support for one-time amnesty scheme suggestion for declaration of foreign assets.
He added that rising current account and trade deficits are a major threat to the country’s economy and they needed to ask donors to provide rollover on foreign loans to help ease pressure on external front.
Hussain said the textile package should be continued and Prime Minister needs to extend invitation to major exporters to continue boosting exports and hold review meetings.
Ex-SBP governor also demanded more work be done to ensure remittances are received via official channels.
And speaking on the occasion, tax expert Shabbar Zaidi shared Pakistan’s taxation system was heavily dependent on imports as around 55 percent of general sales tax was being received at import stage.
He added increasing current account and trade deficits was contributing to rising tax revenues but also unfair for industrialization and manufacturing sector.
Zaidi said the government should consider extending an amnesty scheme for individuals holding foreign assets to declare them. He stressed political parties should in agreement regarding taxation issues as this could not done in isolation.
Indus Motor Company Chairman, Ali Salman Habib speaking on the occasion stressed on masterly approach towards finalizing free-trade agreements (FTAs) as exports were falling.
He added manufacturing sector share in tax collection stands at 60 percent and provides 30 percent to GDP growth. Habib emphasized on the importance of promotion small and medium enterprises sector.