The PM of Pakistan declared the industrial package after lowering the oil and electricity tariffs, reducing inflation. The PM put some light on his government tenure at a ceremony in Lahore during his day-long visit. He said his party should boost industrialization after taking power in the center.
“The biggest thing I should have done on the very first day was announcing the package that I have given to the business community today,” he said.
He criticized the nationalization process and cited it as the major cause of diversion from the progress. Before nationalization, the country was making progress by leaps and bounds fifty years ago. The industrial package includes the incentives for the small and medium industries investment, investing or restoring the staggering units, grant of five-year tax holiday to the overseas investors, decrease in tax rate by increasing the tax base, and no accountability on investing in the industrial sector.
Imran Khan discussed the policy of previous governments, which were against profit-making and wealth creation. He said, “We had decided at the start to focus on industrialization, [especially] the export-oriented industry. But I see now the amnesty we gave we should not have given an open amnesty; we should have [instead] directed it towards the industry.”
The money depreciation against the dollar goes on due to a decrease in exports. Then the country seeks help from the IMF to meet the current account deficit consequences depicting the lack of long-term planning. Pakistan’s economic policy always stands on short-term goals highlighting the government’s political motives. The current government is trying hard to resume the capital from urban plots into small and medium-sized industries (SMEs) for money flow in the country.
Premier called overseas Pakistanis an important asset for Pakistan. Overseas Pakistanis invested in the real estate sector, but land grabbers would grab the plots. “So, we took action against land grabbers. We have set up courts for overseas Pakistanis, and now we are inviting them [to invest] — they will have a five-year tax holiday, no questions asked. And if they do a joint venture with any Pakistani company, then both will get a 5-year tax holiday. The goal is to attract investment,” he said.
Imran Khan also highlighted the importance of the IT sector. He said his government should have granted amnesty in the IT sector. He exemplified the Indian IT sector for progress. The current government exempted freelancers from the tax network promoting the IT sector.
We should incentivize the industry to establish small and medium enterprises to boost exports. Government should launch more platforms like Roshan Digital Accounts to build the trust of overseas Pakistanis, enabling them to invest in the country.
Source:
https://www.dawn.com/news/1677711/pm-imran-announces-industrial-package-says-govt-will-remove-all-obstacles-for-smes
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