ISLAMABAD: Chaudhry Mohammad Jaffar Iqbal, Senator of ruling party PML-N and an important member of Senate’s Standing Committee on Commerce, has said that granting of GSP Plus status proves that international community has complete trust over Pakistan and especially the present government. Although this initiative was taken by the previous government but it is also a fact that the PML-N government stepped up its efforts after coming into power to translate this dream into reality.
In an exclusive interview with Customs Today, Senator Jaffar Iqbal said that the credit definitely goes to PML-N government because Sajjad Kamran is the Member of Parliament in the European Union and he played a vital role in pursuing the case of Pakistan. Of course, the role of Governor Punjab Chaudhry Muhammad Sarwar remained very crucial for lobbying for Pakistan with the support of Prime Minister Nawaz Sharif and Finance Minister Ishaq Dar. After GSP Plus Status, it is for sure exports of the country would be increased up to $2 billion.
Answering to a question, the Senator said that at this crucial juncture, energy crisis has to be dealt with practical measures to get full benefit of GSP Plus as the previous regimes ignored this important sector due to their shot-term policies. It is the top most priority of the current government to overcome the energy crisis through coal, gas and alternate sources and paying of circular debt in the short term but policies have also been chalked out to rid of this crisis on long term basis. Import of gas for industry and domestic users would also be helpful in this regard.
He said that being the Member of Standing Committee of Commerce in Senate, I can say that this GSP Plus status may not endow with huge profits initially but presenting our products in international markets will start producing better results with the passage of time. Shedding light on the performance of the Commerce Ministry, he said that the ministry has to play very progressive role to promote and enhance trade activities. “I have suggested for enhancing the accountability to such extent that Pakistani ambassadors and attachés to different countries should also be held answerable before standing committees as they are deputed to promote Pakistan and its image in foreign countries”.
He said that other things being ignored by successive governments include discontinuity of policies and lack of departmental structure of organizations and sometimes mishandling of projects by rapid transfers and postings. He said that 14% of the total exports of Pakistan are meant to USA but deterioration of the industry and discontinuity of policies badly affected exports of the country.
He said, “A policy takes minimum of three years to get fully implemented. For last 6 years, the tax-to-GDP ratio was calculated at 2.9percent and this year it is improved to 5.9 percent. Similarly revenue collection raised by 17% which means 3 million more people paid taxes and the tax net broadened by adding 70,000 more taxpayers till 18th of December.”
He said, “In this regard, I have suggested to the government that the tax system should be shifted on fixed taxation with the categories A, B and C in which the large industry should fall under category A, small and medium in B and the shopkeepers under C. Tax should be collected from them as per the categories as this system can avoid tax evasion.”
He said that we are also not exploiting the major source of foreign investment by neglecting overseas Pakistanis which are remitting 10 to 12 billion dollars every year. We should provide them better facilities to transfer their money through legal channels as this step can raise foreign remittances up to 15 billion dollars per annum.
He said that basically we are a consumer economy and it seems difficult to curtail our imports like China but there should be a restriction on imports of luxury items and only those items should be imported which are required for fulfilling basic needs. Youth business loan program would prove to be a one major source of encouragement to the small and medium entrepreneurs and the scheme reflects the vision of Prime Minister Nawaz Sharif to promote trade and industry in the country. We have other programs as well to promote trade and industry including establishing Gwadar as a business and trade hub, he concluded.
