He was addressing the participants of 23rd Mid Carrier Management Course of the National Institute of Management Peshawar (NIM Peshawar). He said that according to conservative estimate the population of Faisalabad has crossed the barrier of 10 million. Similarly Faisalabad has been ranked as second revenue generator after Karachi. He clarified that many Faisalabad-based organizations have their head offices in Lahore or Karachi. If these incomes are included under Faisalabad head, then Faisalabad may become the first maximum revenue generating city of Pakistan.
He said that share of Faisalabad is $13 billion. Textile export is contributing 55 % as compared the same with total national export. He said that Faisalabad is contributing 30 % in total export of Pakistan. Responding to a question, President FCCI said that despite repeated commitments the government has failed to enhance scope of tax net rather more and more burden is being shifted to the existing tax payers. He said that few years ago the total number of filers was 3.3 million which has come down to 1.1 million.
He said that the government has ensured uninterrupted power supply to the industrial sector. Though other economic indicators have also improved, yet most of the industries are working with only 50 % of their installed capacity. He said that the government has taken yet another bold step of zero rate to 5 important export sectors but the SRO in this respect has totally changed the basic spirit behind this decision and hence our exports are declining continuously.
He also mentioned costly gas being supplied to Punjab as compared to other provinces and told that no refund claim of sale tax and income tax has been paid after August 07, 2016. He said that millions of rupees refund claims of exporters are stuck up with the government where as they are forced to get fresh loans at high mark-up from the banks in order to meet their daily requirements of finances. He also mentioned textile package of Rs 180 billion and said that it also failed to give relief to the exporters.
Regarding China Pakistan Economic Corridor (CPEC), he termed it a double-edge sword and said that it could damage us if we fail to exploit its potentialities. Regarding BREXIT, he said that it has no negative impact on our export to the UK. Responding to a question about value addition, he said that the government should prefer revival of sick industries and establishment of new and high tech industries units.
Quoting some information, he said that China was relocating coal-fired power plants and other old industrial units to Pakistan. This process should be stopped and China may be requested to set-up high tech industrial units in Pakistan along with technology transfer, he advised. He said that language was yet another barrier. However, FCCI has started Chinese language course to bridge this gap. He told that R&D section of FCCI has also compiled a comprehensive study report on CPEC, clearly identifying its pros and corns. This book has been provided to the government departments and policy makers in order to address the pinching points.
Earlier Mirza Khalid Amin Chief instructor NIM Peshawar told that the study tours arranged by NIM play an important role in the orientation of the participants of these courses. He said that the bureaucracy is responsible for effective implementation of government policies. However, for this purpose they must be fully aware of ground realities.