ISLAMABAD: Special Assistant to the Prime Minister Haroon Akhtar Khan has said that business-friendly policies of the government had resulted in rapid economic development and the country would achieve growth rate of six percent by the general elections to be held in 2018.
“Low tax-to-GDP ratio is hampering development and we are trying our best for improvement as enhanced transparency has been ensured in the FBR”, he added.
He was speaking to the business community at the newly-constructed building of Federation of Pakistan Chamber of Commerce and Industry (FPCCI) here. FBR Chairman Nisar Muhammad Khan, FPCCI President Abdul Rauf Alam and others were also present on the occasion.
Haroon Akhtar said that US is super power because of a good tax system while Europe is considered developed due to good taxation therefore Pakistani business community should also discharge obligation so that Pakistan could develop with a fast pace. He said that a lot of incidents of tax evasion were being reported but “we opt for legal action in very few cases and those who pay tax after detection face no action at all”.
The business-friendly government is collecting tax on one-fourth of the real value of property while a number of sectors including fertilizer have been given tax breaks which has resulted in good growth, he informed.
He said that all the international institutions continue to praise our economic policies, private sector off-take has multiplied, interest rates are at the lowest while lenders like Asian Development Bank is ready to provide loan on less than two percent which indicate its confidence on Pakistani policies.
The government has not transferred burden of improved oil prices to the masses since five months resulting in lowest oil prices in the region, he said, adding that investment and fund transfer to other countries is getting difficult therefore business community should invest in their own country.
Khan said that those who say that foreign debt will swell to 110 billion dollars have overlooked certain facts like the GDP, investment and exports will also take a boost. Debt-to-GDP ratio in Pakistan is at comfortable level of 20 percent while average interest payable on debt is three percent which is not worrying, he informed.
He lauded the services of FPCCI President Abdul Rauf Alam for making FPCCI Capital House in Islamabad operational which is a facility of international standard. “We will have frequent interaction with the business community for collective good”, said Khan.
