With PTI’s win, businessmen expect friendly policies, lower tax rate

Voice hope new finance minister will prove better than PML-N’s Dar

KARACHI: The business community has congratulated Pakistan Tehreek-e-Insaf (PTI) and its leader Imran Khan for victory in general elections and has pinned hopes on the party’s key leader Asad Umar, who is expected to become the next finance minister.

Karachi Chamber of Commerce and Industry (KCCI) President Mufassar Atta Malik said Ishaq Dar, who remained finance minister for more than four years in the Pakistan Muslim League-Nawaz (PML-N) government, wreaked havoc on the country’s economy.

“However, hopes are high Umar will be a better finance minister,” Malik told The Express Tribune. “He would take on board real stakeholders and at least consult them before taking any critical decision.”



Umar is considered a good administrator as he remained at the helm at Engro Corporation as its president and CEO from 2004 to 2012 before entering into politics. Engro is one of Pakistan’s biggest conglomerates.

Malik pointed out that the business community expected business-friendly policies from the upcoming PTI government as Imran had said on several occasions that the cost of doing business would be brought down while the ease of doing business would be enhanced.

He added that the industry had pinned hopes on the upcoming government that it would bring down the tax rate in order to broaden the tax net which would lead to a documented economy and higher tax collection.

“The cost of becoming a taxpayer means one has to pay around 35% of earnings, which discourages many. If the tax rate is reduced, people will start paying taxes in huge numbers,” Malik said.

Association of Builders and Developers (ABAD) Chairman Arif Jeewa also welcomed Imran and the PTI, saying if they fulfilled what they had promised in their manifesto, the country’s fortunes would transform within a year.

“We hope that they will deliver what they have promised. But people will have to be patient,” Jeewa said. “I believe there will be a marked change within one year.”

He added that the PTI’s plan to establish five million low-cost houses was achievable, but even if the target was half met and 2 to 2.5 million houses were constructed, then it would also have a huge impact on the national economy.

“It will create jobs and will give a boost to over 70 allied industries,” he said. “Mian sahab (Nawaz Sharif) promised construction of 0.5 million houses, but did nothing to meet even an achievable target.”

Jeewa also showed faith in Umar’s competence as finance minister and termed him “a man of vision”.

“He had been with us in the standing committee on finance and he certainly is a man of vision and hopes are high as the industry is hopeful that he will deliver,” he added.

He suggested that the Federal Board of Revenue (FBR) needed to be restructured as Imran highlighted in his speech. “There has also been a need to cut the rate to expand the tax net and raise tax collection.”



Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice President Syed Mazhar Ali Nasir cautioned that the party had a huge financial responsibility ahead. He said the approach the party had shown so far regarding the economy had been well drafted and hoped that it would be implemented effectively.

“Country’s overall stability depends highly on its financial stability and we are hoping that the new government will handle it tactfully,” Nasir said.

Meanwhile, Pakistan Business Council CEO Ehsan Malik said the new government’s top priority should be to address the significant economic challenges faced by the country.

“In addition to managing the immediate solvency crisis, the government must quickly chart out plans to address fundamental flaws,” Malik said.

“These include a widening trade deficit, narrow tax base, high tax rates leading to willful evasion, misaligned policies, rampant smuggling, under-invoicing, subsidies and support prices which impact competitiveness, inefficient SOEs, poor governance, etc, all of which are forcing us for the 13th time in 30 years to approach the IMF.”

He said the government must unite the country behind a focused “Made in Pakistan” thrust to create jobs, promote value-added exports, encourage import substitution and commit to broaden the tax base.

Published in The Express Tribune, July 27^th, 2018.

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