Many friendly countries will also provide financial help and loans to Pakistan after the approval of the International Monetary Fund programme, WealthPK reports. Addressing a function at the Lahore Chamber of Commerce and Industry, Punjab Minister for Industries, Commerce, Investment and Skill Development SM Tanveer said that after the approval of the IMF loan, payments would also be received from many friendly countries.

He said that the Punjab Chambers of Commerce Coordination Committee (PCCCC) would help to evolve a better economic policy framework. LCCI President Kashif Anwar presented an address of welcome. Provincial Minister for Local Government and Community Development Ibrahim Murad, LCCI Senior Vice President Zafar Mahmood Chaudhry, PBIT Chairman Jalal Hassan Khan also spoke on the occasion.

SM Tanveer said that the summary of the Industrial Police Liaison Committee was also sent for approval. He hoped that the summary would be approved soon, which would make it possible to end the problems of theft and law and order in industrial estates.

He said that the industrial estates, in which the plots were sold and the industry was not started, would also be worked on with the help of the LCCI. He said that a major reason for the lack of industrialisation was the increase in the cost of doing business. He said that a desk of the industries department should be established in LCCI so that the problems related to industries and other departments could be resolved.

Speaking on the occasion, Provincial Minister for Local Government and Community Development Ibrahim Murad said that 130 cattle markets were outsourced across Punjab. These markets generate an annual revenue of Rs3.7 billion against expenditures of Rs 500 million. Similarly, parking companies are also owned by local governments.

He said that the development fund of the local government was Rs40 billion. The local government uses its own funds to build a road up to five kilometres. Apart from this, there is also an investment of $1 billion for international projects. “We wish to increase the economy of Lahore from $85 billion to $400 billion,” he added.

LCCI President Kashif Anwar said that the serious economic challenges were having a direct impact on business activities. “In order to overcome these economic problems, we have to pay immediate attention to the promotion of import substitution and at the same time we have to take steps to increase the exports to the desired targets,” he added.

He said that the country was a facing foreign exchange crisis owing to the trade deficit, as a result of which banks encountered problems in opening letters of credit. More than 10,000 import containers are still stuck at the port, on which the business community is facing detention, demurrage and port storage charges with every passing day.

He said that many industries were shut down due to the non-availability of imported goods or raw materials and the entire supply chain was affected.

The LCCI president said that industries had to import a lot of raw materials, essential components and machinery, which were not available in the country. He said that they had to pay 100% cash margin, regulatory duties, customs duties and additional customs duties, which need to be eliminated. “Apart from this, the issues of refunds and multiple audits are pending along with reducing the rate of withholding tax for businesses,” he added.

He said that inflation, devaluation of the rupee and high energy cost burdened the industries. “We appreciate the performance of the Environment Protection Department of Punjab, but shutting down industries to control smog is not the solution to the problem. Other factors should also be controlled. Dumping sites in the city also create pollution. Before taking any action against the business community, prior notice must be sent and chambers of commerce must be kept in the loop,” he added.

Kashif Anwar said that the problem of polluted water was becoming severe in Lahore. He said that water treatment plants should be restored. “We are an import-based economy, and our industry is highly dependent on the import of raw materials,” he said. He said that cotton was an important raw material for the textile industry. He added that 9.1 million bales of cotton were produced in 2019-20 but the quantity was reduced to 8.3 million bales in 2021-22.

He said that LCCI always insisted on increasing the tax base. “We have suggested the government immediately announce the declaration scheme so that undeclared foreign reserves can become part of our economy,” he added. He said that taxpayers had to undergo multiple audits of income tax and sales tax. “We appeal that the number of these audits should be reduced. There is an urgent need to simplify the tax system,” he added.

The LCCI president said that there was an urgent need to establish special economic zones and export processing zones in Lahore for the promotion of import substitutions in Punjab because the two major industrial estates of Lahore -- Sunder Industrial Estate and Quaid-e-Azam Industrial Estate -- had almost reached their full capacity.

He said that one of the major problems faced by the business community was a huge increase in the cost of land in the existing industrial estates. “There is a need for a simple leasing policy through which land can be provided in industrial estates, especially for SMEs on long-term lease and at reasonable rates,” he added. The LCCI president said that the water tariff for industrial and commercial use in Lahore was Rs100,000 per cusec, which was many times more than other cities of Punjab. “A uniform tariff should be fixed for all cities,” he said.

Credit: Independent News Pakistan-WealthPk