Reforms stressed in budget proposals

Business leaders advocate for streamlined operations, investment incentives to boost SMEs

KARACHI:

Various trade bodies, associations, chambers, and groups have presented their budget proposals. These include implementing a one-window operation for all industrial units, forming a 10-year consistent policy, reducing energy tariffs, promoting localisation, cutting interest rates, spurring entrepreneurship, discouraging unnecessary imports, and adopting cutting-edge machinery and techniques in the agriculture sector.

President of the Hyderabad Chamber of Small Traders and Small Industry (HCSTSI), Muhammad Farooq Shaikhani, Chairman of Sea-trade Group of Companies, Muhammad Najib Balagamwala, Chairman of All Karachi Tajir Ittehad (AKTI) Atiq Mir, along with other industrialists and business leaders, shared their budget proposals with The Express Tribune.

They stressed the need for ample funds for road infrastructure in the port city and controlling runaway street crimes. Immediate implementation of the Karachi Safe City project without hindrances to funds was urged.

They called for a one-window operation for all industrial units to address the approximately 67 departments causing obstacles and hindering industrial growth. They also advocated for allocating subsidies to reduce the burden of gas and electricity prices on industries, particularly small and medium-sized enterprises (SMEs). Immediate initiatives were urged to stop the closure of SMEs and curb the rising flow of smuggled goods.

Rumours in the market allege that the government is considering imposing a tax on solar/alternative energy of Rs2000 per kilowatt. The businesspeople opposed this imposition of tax on solar energy and recommended an increased budget allocation for initiatives supporting SME development. They suggested the government launch vocational training programmes and providing financial assistance to promote entrepreneurs.

Allocating funds for infrastructure in the Sindh Industrial Trading Estate (SITE) Hyderabad was deemed vital for industrial growth, job creation, and productivity enhancement in the region. A reduction in interest rates would incentivise investment in new industries, encouraging entrepreneurship and stimulating economic activity.

Scaling up the development budget was suggested to fund key projects aimed at economic growth and social development. They further suggested investing in education, healthcare, and infrastructure which, they said, would contribute to long-term prosperity. Encouraging diversification of exports and exploration of new markets would reduce reliance on traditional export sectors.

They highlighted significant losses due to basic bureaucratic hurdles and machinations, urging the adoption of two tariffs for import and export cargo vessels. Reductions in tariffs for vessels carrying essential commodities like fertiliser, wheat, and edible oil were proposed to lower costs.

The business leaders also called for penalties for political parties obstructing trade traffic during protest sit-ins. Truck detention charges were suggested to ensure uninterrupted trade flow.

Published in The Express Tribune, May 11^th, 2024.

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