Officials of a visiting Chinese delegation have expressed the desire to set up textile units in Pakistan. According to them, the Chinese business community is facing high cost of production as well as environmental issues and Pakistan is an ideal place for the relocation of textile industry.There is no better idea thansetting up multidisciplinary, multiple-format, diversified textile enterprises in Pakistan by the business communities of the two countries. The European Union is fast reaching a saturation point as their industry is heading towards collapse due to high cost of doing business, low young population and financial crisis which are travelling from one country to another. The Pakistani industry is facing energy crisis, overlapping tax system, corruption and terrorism. The there is no action plan to streamline industry, investment and trade activities. In this hour of need, the offer by the business community of China is good omen. The visiting Chinese officials have discussed various issues and opportunities of cooperation with their Pakistani counterparts. There is no denying the fact that people to people or business to business contact between Pakistan and China is almost non-existent and it needs to be established.
As the government is planning to establish export processing zones and industrial estates along the China Pakistan Economic Corridor, it will be in the best interest of the local investors to set up joint ventures in partnership with the Chinese businessmen. Besides, development of infrastructure is already in process and the government should facilitate the local and foreign investors with tax facilities along with duty-free import of equipment, machinery and raw material. The government’s ease of doing business plan should be made viable with practical steps and not mere through the lip-service. The local and foreign investors should also be treated in the same manners to remove sense of deprivation or the sense alienation from any side. A capacity building programme for the government officials is also need of the hour so that they should work as facilitators and not as trouble makers. It is a positive steps of the government in which it has allowed foreign direct investment in all sectors and has allowed 100 percent foreign equity investment without any requirement of the government permission.The cost of doing business in Pakistan is lower than China and it will be in the interest of Chinese businessmen to relocate their textile units into Pakistan.It is hoped that the export package announced by the government, allowing zero-rated sales tax and other concessions in import of raw material will encourage foreign investors to invest in this sector in Pakistan.
FBR to launch faceless tax audit system
ISLAMABAD: The Federal Board of Revenue (FBR) is set to introduce a faceless audit and assessment system across all four...
