Ahmed Khan Malik

Entrepreneurs in the Uthal Industrial Estate of Lasbela district have demanded the Balochistan government withdraw the infrastructure cess on exports from the province.

According to the entrepreneurs, industries are already in peril due to the high cost of energy coupled with expensive bank borrowing, which have been making industrial products uncompetitive in the international market, where regional competitors sell their products at lower prices. The infrastructure cess is another nail in the coffin of the industries, which have been struggling to survive, they point out. Recently, the Balochistan government slapped the infrastructure cess on exports originating from the province. “It is a disaster for the industries in the province, which have been already braving the high cost of production as well as the poor infrastructure and law and order situation,” Habib Junaid, a leading businessman in Uthal Industrial Estate, told WealthPK.

He termed the infrastructure cess on exports a wrong and bizarre decision, which is tantamount to hostility against the country. Junaid slammed Balochistan Revenue Authority for taxing exports, noting that globally, countries offer rebates on exports. “It is strange that the country calls for boosting exports and reducing reliance on imports, yet such circulars imposing new taxes discourage not only existing industries but also send a negative message to potential new investors in the province,” he added. Junaid noted that exports should not be taxed; rather they should be incentivised for the country's progress and the prosperity of its people. Dilawar Aleem, another prominent industrialist in the area, said that the industry in Balochistan was already facing significant challenges due to a lack of essential utilities such as energy, gas, and water, which are vital to maintaining production.

“Despite these obstacles, industrialists in the province are striving to keep their units operational.” He said that instead of providing relief, the imposition of new levies and taxes would leave industrialists with no choice but to consider relocating their operations to more business-friendly regions. It is important to note here that many of these industries operate across provincial borders and already pay all applicable taxes when exporting their products. Balochistan possesses enormous industrial potential in key sectors — agriculture, livestock, fisheries and minerals. Balochistan industries are mainly concentrated in Hub, Uthal, Gadani and Quetta.  Uthal Industrial Estate was originally initiated by the Industries & Commerce Department, government of Balochistan. However, after the establishment of Lasbela Industrial Estates Development Authority, the control of Uthal Industrial Estate was assigned to this authority.

Credit: INP-WealthPk