KARACHI: Pakistan’s leading industrialists Muhammad Ali Tabba and Musadaq Zulqarnain have called for structural reforms for economic turnaround, and other concrete steps to offer a conducive business environment to achieve industry and export-led growth.
Speaking at Geo News’ programme Naya Pakistan with Shahzad Iqbal, Muhammad Ali Tabba said majority of industries such as large-scale manufacturing are running under capacity due to massive dumping of commodities from China and other countries, including textiles.
He said given the scale at which mills are closing down in the country, he believes that within the next six months, 50 per cent spinning capacity will be wiped out, emphasising that foreigners want political and economic stability, besides favourable business environment.
He lamented that Pakistan does not have favourable business environment because a “hostile environment has developed against businesses, manufacturing and other sectors”. He said Pakistan has not been doing any structural reforms possibly for the past decade or so. He said Pakistan’s economic growth has stalled at 3.5 per cent while India’s growth has gone up to 8 per cent.
While Musadaq Zulqarnain said the IMF needs to be convinced to bring down tax rate. He called for eliminating super tax, and bringing down taxes on salaries class and industries. He also stressed the need for reviewing policy rate.
He said Pakistan should not look towards consumption-led growth. “It’s time we moved towards industry and export-led growth.” However, he added due to the prevailing conditions such as taxation, interest rates, energy mismanagement, labour laws and numerous other issues, it is not becoming possible.
Musadaq Zulqarnain pointed out that there is a large segment of the society those are affluent, as well as there is some undocumented corporate sector, who are not paying their due share of taxes. Therefore, he said, this whole burden of taxes is being transferred to documented corporate sector and the salaried class.
He questioned why is the federal government funding BISP, adding it should be shifted to provinces, while lifeline consumers’ energy subsidies should also be shifted o provinces. He said this role the SIFC has to play. He said concrete steps will have to be taken.
He suggested that super tax needs to be eliminated, and income tax on salaried classes also needs to be brought down.
“Inter-corporate tax needs to be ended”. He further called for reviewing policy rate. He said today agriculture, manufacturing, real estate and all sectors are in worse condition.
