Economist points out policy shortfalls

Stresses need for bringing down sales tax to single digit to boost exports

KARACHI: Pakistan needs to bring down the sales tax rate to single digit to boost its exports, renowned economist Dr Kaiser Bengali said.

“Pakistan’s exports are declining due to infrastructure issues and flaws in revenue collection,” he said during a speech on present economic situation of the country at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

He said the economic growth was slow in the last few years due to lack of consensus on core issues. Moreover, the policymakers have failed to give a sustainable framework and focused only on short-term policies.

He said imports were increasing and the oil bill was around 40% of the country’s annual imports because Pakistan was dependent on oil for electricity needs.



Bengali also pointed to the dangers of future water crisis and said the authorities should adopt modern technologies to address such challenges.

He stressed the need for diversifying the export destinations. For the past many years, Pakistan’s exports have been dependent on rice, leather and garments and such concentrated export base needs to be expanded.

The presentation of Bengali was hosted by Tajwar Baig, Chairman of the FPCCI Standing Committee for Corporate Relations.

Earlier, FPCCI Senior Vice President Shaikh Khalid Tawab said the government had failed to achieve economic growth targets, but the current rise in industrial growth and the decline in interest rates were helpful for the economic growth.

Published in The Express Tribune, June 23^rd, 2016.

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