LAHORE:The current economic situation is difficult and demands a concrete planning to start an upward growth trajectory.
These views were expressed by the experts while speaking at a Roundtable Conference on Pakistan’s Options for Economic Turnaround here at Lahore Chamber of Commerce and Industry. LCCI President Kashif Anwar, Vice President Adnan Khalid Butt, Head of Economic Department, LUMS Dr. Syed Ali Hasnain and Chairman Economic Affairs Committee of Jamaat-e-Islami Asif Luqman Qazi spoke on the occasion.
LCCI President Kashif Anwar said that the country is currently facing serious economic challenges which demands immediate Charter of Economy by the political parties.
LCCI President also emphasized on political stability, economic restructuring, tax on agriculture, agricultural reforms, privatization of State Owned Enterprises, self reliance, expert opinion, mines and mineral policy, ease of doing business, administrative measures, expansion of tax base, human capital development, reduction in expenditures, Islamic system and increase in productivity.
He said that recently, the federal government has presented the Finance Bill 2023-24. There is an urgent need to look at the current situation of the economic problems being faced by the country with a comprehensive approach apart from the budget because the country cannot afford any more economic depression.
He said that until the problems of the local industry are not resolved, the economy could not grow. He said that industries have to import a lot of raw materials, essential components and various machinery which are not available in the country, on which they have to pay regulatory duties, customs duties and additional customs duties, which need to be eliminated. Besides reducing the rate of withholding tax for businesses, the issues of pending refunds and multiple audits should be resolved.
The LCCI President said that currently taxpayers have to undergo multiple audits of income tax and sales tax. “We appeal that the number of these audits should be reduced. Apart from this, taxpayers have to bear all the audits, penalties, surcharges, bank attachments, inquiries, statements, returns, withholding of registered persons, penalty for late filing of statements/income tax returns and many other issues,” he maintained. Penalties and surcharges should be immediately reduced for taxpayers.
Kashif Anwar said that the promotion of industrialization in the country is almost impossible without reducing the cost of doing business. The industries are facing problems like high policy rate in history which has reached 21 percent, inflation rate is 38 percent, high energy cost, devaluation of rupee. In this situation, it has become more difficult for the exporters to compete in foreign markets. There is a need to work on an emergency basis in this regard as well.
He appreciated the government’s initiative to issue SRO to promote barter trade with Iran, Afghanistan and Russia. “We request that the implementation of this SRO should be ensured so that the pressure on domestic currency can be reduced due to shortage of dollars.”
He said that the the government also needs to attract private investment to build new dams and reservoirs. “We should also expand the solar energy network as we still get less than five percent of our energy needs from it. Pakistan has to import more than US $ 20 billion worth of crude oil to meet its needs.”
He said that the outstanding debts & liabilities of Public Sector Enterprises have reached Rs 2141 billion in March 2023, which is a huge burden on the country’s economy. A clear plan for reduction should be drawn up.
Kashif Anwar said that inconsistency in economic policies has a big role in the economic crisis in the country. He said that Lahore Chamber has informed the leaders of almost all the major political parties of Pakistan through letters in view of the economic situation of the country that they have to correct the current economic situation of the country.
Dr. Syed Ali Hasnain said, “We do not have a plan to manage debt. US $ 75 billion are to be paid within three years for which we do not see any kind of plan. We have shaped the economy in such a way that export generation is low and import demand is high. Luxury goods are imported all over the world but no other country has the same balance of payment problem as we do.” He said that some politicians say that Pakistan has a problem of current account deficit. Other countries also have this problem but the question is that there is invert investment in other countries which is not in our country. “We need a serious five-year debt management plan.” There are several basic debt restructuring solutions, the first one is distress defaulting and then restructuring. He said, “Another way is to get our lenders to restructure ahead of time, but we’ve gone beyond that.”
Asif Luqman Qazi said, “We have to sit together and find a solution to the crisis. We want the Charter of the Economy to lead the Chamber. And produce a document on which all political parties sit and discuss.”