LAHORE: Pakistan Businesses Forum (PBF) suggested the government to take effective economic measures including single digit policy rate in the coming federal budget to encourage business activities in the country.
Sharing the Forum’s proposals for upcoming federal budget 2022-23 with media men here Wednesday, PBF President Mian Usman Zulfiqar stressed the need for establishing export warehouses at the borders to uplift trade with neighboring countries and incorporating the agriculture and service sectors into the tax net.
In an effort to increase the GDP growth up to six percent in next financial year, the budget makers have to reduce tax rates to widen the tax base and curtail parallel economy, also providing a competitive edge to Pakistan’s products in global markets.
Mian Usman Zulfiqar said the PBF was giving its proposals for the federal budget 2022-23 with main focus on jobs creation by strengthening industry, broadening of tax base through lowering rate and introducing liberal policies to attract foreign investment.
During the last three decades, he said, it was only twice when Pakistan’s economy grew by more than 5 percent –first in 2003-2006 and second during 2016-2018. He said that realizing the full potential of information technology, the industrial production can be increased. He observed that the digital finance potential of Pakistan could be $36 billion in next four years, giving a seven percent boost to the GDP and generating four million new jobs.
The real fact is a lack of realization that the world business patterns have changed and Pakistan has made no efforts to adjust to those realities. If the country wants to have a higher growth rate, it would have to adopt new innovative ways in the post-pandemic world as is being done by other countries, which are expecting a fast V-shaped recovery. “We need to bring our digital infrastructure at par with other fast developing countries, besides adopting new technologies and implementing e-government solutions,” he suggested.
The PBF President proposed the economic managers to incentivise investors, broaden tax net through documentation of economy, simplify tax system and take solid step to reform the tax collecting agency.
