January 24, 2019: Federation of Pakistan Chambers of Commerce and Industry has termed recent economic reforms package growth and production-oriented, business-friendly and balanced in the prevailing economic scenario, reflecting its commitment to make the country economic giant in the region in the days to come.

FPCCI President Engineer Daroo Khan Achakzai and Senior Vice President SAARC CCI Iftikhar Ali Malik in a joint statement said positive steps have been announced and the government has accepted the demand of commercial importers in connection with withholding tax, which was good sign for the businessmen across the country, a press release issued on Thursday said.

Daroo Khan further said this was the first time that investors get a taste of the policy direction of the current government, the government has emphasized on its commitment to protect the underprivileged whilst also allowing a more economically conducive environment for businesses.

The tax reduction in agricultural and housing sectors will help improve the situation and boost agricultural production adding he said, “We will cooperate with the government like always as the recommendations we sent have been implemented”.

He said that relief has also been given to non-filer of purchase of car up to 1300CC and withdrawal of withholding tax on cash drawing of Rs 50,000 is also another good omen.

However, he said the government needs to bring down the fiscal deficit by 1.5 percent of GDP during fiscal year 2019.

In contrast, relief measures already announced stand close to Rs150 billion, which would further increase the deficit to Rs650 billion.

Iftikhar Malik said that FPCCI and UBG leadership in principle agreed to lend helping hand to the government in this regard. He said plugging of revenue leakage and broadening of tax net will ultimately benefit the existing tax payers in terms of reduction in heavy taxation.

He said that relief in taxation and duties will definitely pay dividends and accelerate the pace of economic activities in the country. It will further provide ample opportunity of ease of doing business in the country.

He further said the government should announce another amnesty package across the board and bring overseer too into domain of amnesty with this precondition that money which will be declared legal through this scheme be invested only in industrial sector.

He also praised the government for extending economic cooperation with other countries in the region and Prime Minister Imran Khan’s reiterated stances that Pakistan wanted durable and peaceful relations with India.

Malik said imports were increasing more than exports and recently the country has started importing items that were never imported before. “India’s exports to Pakistan have reduced 19 percent whereas Pakistani exports to India have also witnessed a cut of nine percent this year,” he said.

“Removing barriers in Pakistan-India trade will boost growth rate immediately and have a modest impact on the economy,” he concluded.

(APP)

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