Forum for setting up export warehouses

Pakistan Business Forum (PBF) has asked the government to take effective economic measures including encouraging business activities in the upcoming federal budget, with a flavour of austerity across the board in the public sector.

Sharing the forum’s budget proposals with The Express Tribune, PBF President Mian M Usman Zulfiqar underlined the need for establishing export warehouses in border areas to uplift trade with neighbouring countries, and incorporating agriculture and service sectors into the tax net.

To increase gross domestic product (GDP) growth to 6% in the next fiscal year, budget-makers should reduce tax rates to widen the tax base and curtail the parallel economy, which would provide competitive edge to Pakistani products in global markets, he said.

Over the last three decades, he pointed out, it was only thrice when the economy grew by more than 5%, adding that by realising the full potential of information technology, industrial production could be increased.

“Digital finance potential of Pakistan could be $36 billion in the next four years, giving a 7% boost to GDP and generating four million new jobs,” he projected. The PBF president was of the view that Pakistan had made no efforts to adjust to the changing world business patterns.

“If the country wants to have higher growth, it would have to adopt new innovative ways in the post-pandemic world as is being done by other countries, which are expecting a fast V-shaped recovery,” Zulfiqar stressed.

“We need to bring our digital infrastructure at par with other fast developing countries, besides adopting new technologies and implementing e-government solutions.”

PBF recommended the abolition of super tax, which was imposed last year on companies earning more than Rs150 million per annum and urged the government to reduce the general rate of minimum tax under Section 113 of the Income Tax Ordinance 2001 from 1.25% to 0.25%.

“Considering the current economic turmoil and inflationary pressures on prices and cost, the minimum tax should be abolished, at least for listed companies,” it emphasised.

PBF VP Jahanara Wattoo proposed to the country’s economic managers to incentivise investors, simplify the tax system and take solid steps for reforms in the tax collecting agency.

Published in The Express Tribune, May 20^th, 2023.

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