Businesses want borders open

LAHORE: Businessmen believe the “business- and industry-friendly” budget should spur investments in the manufacturing sector and boost exports.

Mian Mohammad Mansha, the chairman of MCB Bank and Nishat Group, was encouraged to see the government cut subsidies and do away with certain tax exemptions.

However, he wanted the gov­ernment to take more mea­sures to resolve energy sector issues and privatise public sector companies, especially power distribution and generation firms. “It is impossible to revive the public sector businesses without giving them in private hands.”

Mr Mansha, who described boost in investment as the biggest challenge facing the economy, urged the government to open trade with India and enhance economic cooperation with other countries in the region for long-term economic growth and stability.

“The country would adjust to new market realities once borders are opened,” a statement by his office said.

Punjab’s All Pakistan Textile Mills Association (Aptma) chairman S.M. Tanveer described the budget as pro-textile. He said the measures like reduction in the cost of credit, fiscal incentives for the value-added textile sector, duty-free import of machinery for the next two years, cut in export refinance rate, etc announced in the budget would make industry more competitive.

Senior Aptma leader Gohar Ejaz was happy that the budget sought to broaden the tax net to provide relief to the existing taxpayers. He believed that the increase in the number of taxpayers as well as tax collection should help the government control its deficit, reduce public debt and free up resources for development of economic and social infrastructure.

Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) chief patron Ijaz Khokhar said it was the first budget in years that sought to develop value-added textile sector.

However, the Sialkot-based exporter urged the government to fulfil its commitment to refund the outstanding sales tax claims by September to end liquidity crunch facing the small- and medium-sized textile exporters.

Pakistan Textile Exporters Association (PTEA) chairman Sheikh Mohammad Ilyas saw no relief for the value-added exporter. “In the absence of energy, how would we operate our units? And if there is no production how can we benefit from the incentives?”

LCCI: The federal budget is energy and infrastructure focused with ambitious tax collection plan, according to the Lahore Chamber of Commerce and Industry (LCCI).

Addressing a news conference after the budget speech, LCCI President Sohail Lashari said the government’s focus on constructing water reservoirs, establishing LNG terminal and approving EximBank would go a long way to revive the economy.

Senior Vice-President Mian Tariq Misbah and Vice-President Kashif Anwar said that the decision to constitute national food security council was a step in right direction.

APBF: All Pakistan Business Forum’s founding chairman Syed Nabeel Hashmi was sceptical of budget’s implementation, especially introduction of taxes at retail stage.

He said education and health outlays should have been raised further.