The real solution to Pakistan’s economic problems lies in reforms as massive inefficiencies in tax collection and stagnant export growth can be observed, remarked All Pakistan Business Forum President (APBF) Syed Maaz Mahmood.
In a statement on Wednesday, he stressed that the focus of government should be on promoting exports and restricting imports besides turning the domestic industry competitive.
“Exports of goods and services are an injection into the circular flow of income as they lead to a rise in aggregate demand and an expansion in output which, in turn, helps raise per capita income and reduces extreme poverty, especially in developing economies like Pakistan,” he said.
Tax compliance must improve and tax base should be broadened, which could not be achieved with a single policy change but by following a systemic approach, he added. According to Mahmood, concentrating on import substitution is imperative to narrow down the import bill. “Certain imported products such as oil are of fixed nature, hence the government needs to enhance focus on industries related to import substitution such as chemical, agriculture and steel,” he said. In the statement, APBF Chairman Ibrahim Qureshi said that global trade had still not recovered from the dent caused by the Covid-19 pandemic as exports of regional countries registered a decline but Pakistan’s exports bounced back.
Published in The Express Tribune, December 17th, 2020.
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