ISLAMABAD: Mian Akram Farid, the vice president of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), has said that the government should consult with chambers of commerce and other trade organizations before chalking out economic policies.
In an interview with Customs Today, he said that the Federal Board of Revenue (FBR) should also keep trade bodies involved in policy-making. This method has been successfully adopted by the neighbouring countries to improve their economies and exports.
About declining trends in exports, Farid said that annual target of $50 billion for exports was achievable but there was a need to tap the potential of GSP Plus status. He said that the textile sector was facing problems due to delay in refunds and power shortage. Timely issuance of refunds will ultimately enhance the production and exports as well, he said.
The Ministry of Commerce must sign free trade agreements with Korea, Thailand and other countries while appointment of professionals from the private sector — from 30 to 40 percent — must be ensured in trade missions abroad.
He said that defense production of Pakistan was of international standard as Khalid Tank, Thunder 17 plane and ammunition were being exported, adding that the Commerce Ministry could export defense equipment to Arabian countries, which were already buying from the developed countries. The FPCCI is always ready to extend its cooperation to the government.
Farid said that Pakistani textiles, cotton, rice and citrus fruit were popular in the US, Europe and Middle East. He urged the youth to take interest in agriculture, horticulture and food processing industries. He also appreciated the subsidy of Rs 900 million for laser land levelers across the Punjab.
To meet energy shortage in country, the government should focus on hydel, nuclear and wind sources, he said, adding that Pakistan has big glaciers but all water falls into Arabian sea due to lack of planning.
He added that around 15,000 megawatt of electricity could be generated through wind, besides urging the government to not sacrifice mega projects like Kalabagh Dam and Pakistan Steel Mills.
Saying that China-Pakistan Economic Corridor (CPEC) will have far-reaching effects and it will prove milestone for Balochistan, a deprived part of country, Farid suggested that government should review the FTAs with China to save the local industries especially in Sialkot. The FBR should reconsider zero income tax facility on Chinese banks in Pakistan.
Highlighting the importance of Small Medium Entrepreneurs (SMEs), he said sustainable economic development was possible without development of SMEs. Commercial banks must offer loans at the rate of 5 percent per annum to medium entrepreneurs rather than offering finance for cars and cabs, he said
He asked that head offices of Small Medium Entrepreneurship Development Authority (SMEDA), Industrial Development Bank of Pakistan (IDBP) and Trading Corporation of Pakistan (TCP) must be shifted to more secure Islamabad for effective operations, performance and monitoring. Poor performing TCP must be revamped for buying and selling of cotton, rice, sugar and flour, he said.
He recommended the FBR to bring the lawyers, physicians, university teachers and accountants into tax net as they have been earning huge. He said that income tax passbook should be introduced for income tax collection because audit created confusion in taxpayers. Pending cases with courts and Federal Tax Ombudsman (FTO) must be solved through alternate methods.
He said that overseas Pakistanis were real backbone of country and their population was increasing, adding that ‘Overseas Pakistanis Ombudsman’ should be formed without delay in great national interest.
Talking about the potential of women entrepreneurs, he said that govt should offer incentive to women in order to facilitate them for establishing their own business. He added that investors in developed countries could establish a company or factory in only seven days due to the one window operations.
FPCCI conferred awards on merit to journalists and media companies covering economic issues and run TV programs on trade affairs. We have to make Pakistan a quality brand.
Government and business community in a coordinated operation could get rid of International Monetary Fund (IMF) and its conditional policies.
