The All Pakistan Business Forum (APBF) has asked the government to formulate long-term and consistent policies for the swift revival of industry and considerable improvement in exports.

Concrete measures should be taken and effective plans devised to reduce the cost of doing business, which has become the major hurdle in economic growth, especially after the recent devastating floods in the country, APBF President Syed Maaz Mahmood said.

Talking to a delegation of different industrial sectors, he said that Pakistan’s exports, after witnessing some improvement last year, were again showing stagnancy. The country might not achieve the desired results if attention was not paid to the factors hampering industrial and export growth, Mahmood said, according to a press release received by WealthPK.

“We want clarity and continuity in policies at least for one year,” he said. There were still hurdles to opening letters of credit, as well as several restrictions on imports of industrial raw materials, despite the approval of the IMF loan’s first tranche, Mahmood pointed out.

He said that the high cost of doing business proved dangerous for Pakistan’s industry as it discouraged investment both in capacity and capability. He called for lessening the burden of heavy taxes on the power sector.

Syed Maaz Mahmood said to save the economy from the impacts of the slowdown caused by the unprecedented floods, the government should announce special incentives for cash-strapped small and medium industries.

They represent more than 90% of around 5 million business enterprises in Pakistan, contributing 40% to the GDP, employing more than 80% of the non-agricultural workforce and generating 25% of export earnings, he said.

Maaz Mahmood condemned the National Electric Power Regulatory Authority for shifting the power distribution companies’ inefficiencies burden to the consumers by jacking up the tariff under monthly Fuel Adjustment Charges.

He said that constant power tariff hikes in the name of Fuel Adjustment Charges had pushed electricity prices higher, which added to the already soaring cost of trade and industry.

The industries needed low-price energy to bring down their cost of production and keep their goods competitive in the international market, he added.

The APBF president said Pakistan’s exports could not compete with China, Bangladesh and India, where power tariffs were 7 to 9 cents. The country’s industrial growth and exports might witness a major setback these days due to the high price of electricity, he added.

He said that fuel and electricity are regarded as the lifeline of any economy and play a pivotal role in the socio-economic development of a country.

He observed that the government, in the present circumstances, would have to reduce the prices of electricity and petroleum products to bring down the cost of doing business and to promote industrial activities.

He said that business activities were already declining, and therefore, the government should take serious steps to cut the cost of doing business.

The constant hikes in oil rates would further enhance the cost of production and make the transportation of goods more expensive, he added.

APBF Chairman Ibrahim Qureshi said the government should take solid measures to strengthen the industry, especially the small and medium enterprises (SMEs) to save the livelihood of millions of workers associated with it.

He emphasized the need to support SMEs to bring prosperity to the country. He said there should be a five-year holiday from all taxes and levies for newly-registered companies, especially SMEs in flood-hit areas. There should also be an exemption from audit for newly registered SMEs in that period, he added.

Credit : Independent News Pakistan-WealthPk