ISLAMABAD: An economic watchdog has criticised the tax exemptions announced by the federal government for the equipment being imported for the China-Pakistan Economic Corridor project.
Pakistan Economy Watch (PEW) President Dr Murtaza Mughal has said that business community has started raising questions about the impact of these tax exemptions for CPEC on local industry.
According to a press release, Dr Murtaza said that government has allowed import of all the machinery and other equipments without any duty and taxes for the project, which has put local industry on disadvantage that is against the national interest.
He said that cost of doing business was very high in Pakistan; therefore, locally produced goods cannot compete with the goods imported without any duty and taxes leaving local manufacturers high and dry.
In this scenario, local heavy and cottage industry is not getting benefit of $46 billion investment, which is impeding industrial expansion, revenue and jobs creation, he maintained.
The government should review the arrangements for CPEC so that it can contribute in the industrial expansion in Pakistan, as a lot of industrialists have started preferring trading due to difficult environment, which is a threat to the economy, he said.
The PEW president said that the British, during their long rule, made thousands miles of road and rail networks, bridges, educational institutions, hospitals, largest river system and airports etc, but their objective was not to benefit masses but to prolong their rule.
After independence, many governments have failed to design projects, keeping benefit of masses in the mind, which is one of the reasons behind opposition to the mega projects, he added. Dr Mughal said that many people in Pakistan term CPEC as a gift, while Chinese companies term it as a business deal beneficial for both the nations.
