KARACHI: Economic & Financial Analyst, Ateeq Ur Rehman has said that the biggest concern in the proposed Federal Budget FY 2020-21, with other concerns, is its silence on existing huge energy prices, which ultimately increases the cost of production and cost of doing business.
Moreover, the assumptions are that the energy prices will be revised up after the first quarter of fiscal year, this could be a big problem in future and as such businesses do not have capacity to absorb it, said Ateeq Ur Rehman.
The federal government seriously needs to redress this common concern of industrialists, traders, businessmen, and residential consumers on an urgent basis.
Hefty energy bills are a massive burden and beyond anyone's reach and destroying capacity building. He said that Covid-19 surely and severely damaged the economy, which we can cover by extensively growing our exports.
The export target of USD 26.2 billion is achievable once we positively entertain the receiving export inquiries about PPEs including facemask, disposable gowns, disposable gloves, face shields, biohazard bags, goggles, shoe covers, and hand sanitizers from foreign buyers.
It will be a bit difficult only because of global competitiveness, enhanced cost of production due to huge energy prices and ballooning interest rate. The budget is silent and has no relief on it.
He said the government should announce refinance schemes to reinstate sick or financially ill industrial units. For the economic and industrial growth of the country, it is inevitable to have provision for revival of sick industries; the budget is silent and has no relief on it.
He added that the government must protect its revenue by protecting the small businesses, small traders, small manufacturers and small vendors. Introduce refinance or other schemes for their survival.
Revenue could be covered, collected and automatically generated later on once trade, industry and SMEs survive.