(January 31, 2020)
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday said increasing exports is the only option to revive the economy and ensure development.
Move of the SBP to increase credit limit for exporters is laudable but it may not world as doing business has become extremely difficult, he said.
Mian Zahid Hussain said that double-digit interest rates, power tariff increase by seventy percent, delayed refund payment and taxation issues have become serious problems for the industrial sector.
Talking to the business community, the veteran business leader said that now the tariff for the export sector is higher than all of the competing nations which will leave our products too costly in the international market.
The former minister noted that the export sector is being threatened with disconnections while the exporters may not be able to fulfill their commitments after the new power tariff which will result in loss of business and dent their credibility.
He noted that refunds are not being paid as per the promises, while the issue of the tax credit are not being resolved amicably which has resulted in a liquidity crunch for the businessmen that is having a demoralizing effect.
The ambitious targets of IMF and FBR have made life difficult for the business community, he said, adding that taxes should be meant to improve trade policy and support the industrial sector but it has become a tool to generate maximum revenue.
He noted that some of the textile groups have no option but to close their units or opt for migration to other countries.
Realizing the difficult situation, some diplomats have started luring the local export sector to set up industries in their countries where investment climate in better, he said.