(November 06, 2017)
President; Pakistan Businessmen and Intellectuals Forum (PBIF) and All Karachi Industrial Alliance (AKIA) First Vice Chairman President of the Businessmen Panel of FPCCI Mian Zahid Hussain on Friday said pace of reforms in the power sector is frustrating which is threatening economic stability of the country.
Power sector reforms are directly linked to investors’ confidence and investment in the country which must be realised, he said.
He said that power sector losses could not be reduced during 2014-25, circular debt reached to two percent of the GDP to Rs600 billion and recoveries were down by one percent.
Masses and economy continue to get punished for the weakness of the power sector which must get immediate attention of authorities.
Mian Zahid Hussain said that government has assured IMF to hike power tariff, keep surcharge intact, reduce losses and 100 percent collection but steps in this direction are yet awaited.
He said that Pakistan missed three critical targets but IMG has agreed to release 502 million dollars while World Bank and ADB will also lend 900 million shortly.
The veteran business leader called for improving tax mechanism, swift privatization and improved investment climate. He said that tax collection target for the first quarter has been missed by Rs40 billion for which masses should not be made to pay.
Tax rate is highest in Pakistan as compare to regional countries therefore only 0.3 percent population pay taxes which is increasing size of underground economy, he concluded.