Industrial revival key to sustainable economic growth: Economists
ISLAMABAD: The economic experts here at a seminar on “Shifting Policy: from stabilization to higher economic growth”, urged the government to take decisive measures for revival of industrial sector in upcoming Budget 2015-16, in order to achieve a sustainable economic growth for the socio-economic prosperity of the country.
The seminar was organized by the Institute for Policy Reforms here on Thursday.
Chairman Institute of Policy and Reforms (IPR) and Commerce Minister Humayun Akhtar Khan speaking on the occasion said that government must take these measures in earnest.
He said government should focus on industrial diversification and growth for sustainable development of the economy.
He said “We need to enhance and broaden the tax net and tax base regime for economic growth in the country”.
Government, he said, must allow direct transfer from recognized foreign banks to invest in industry and infrastructure projects. Duty exemption on capital goods in prioritized sectors also would spur growth, he remarked.
Khan recommended that the government must facilitate land availability for industry in urban areas.
Noted economist, Dr Ishfaq Hassan Khan said the tax policy should focus to broaden the tax base and not raise tax rates.
Second, monetary policy should remain expansionary and improve private sector access to credit at lower cost.
He appreciated the State Bank of Pakistan (SBP) for reducing policy rate from 8 percent to 7 per cent recently.
Former Chairman FBR, Abdullah Yusuf, in his remarks stressed the need for broadening of tax base and bringing tax evaders into tax net for the prosperity of the country, besides withdrawal of tax exemptions.
It was important to rationalize corporate and individual income tax rates and to phase out fixed and presumptive tax rates, Abdullah said.
He said that to improve tax compliance, FBR should simplify tax returns.
