KARACHI: Large scale manufacturing sector continued to post contraction for the past two years as government, in order to reduce current account deficit, imposed restriction on imports which is adversely affecting the industrial sector dependent on imports of raw materials.
But on the other hand Pakistan's current account posted a deficit due to massive rise in imports which include essential food items, capital goods, oil and industrial raw material, said Ateeq Ur Rehman, economic & financial analyst.
We have to either indigenously produce raw material or eradicate curb on imports by cutting in import duties and reducing additional customs duties on import of raw material and intermediary goods in order to push economic activities by mass industrialisation, revival of sick industries and growth of value added industry.
He added that reduction in taxes are badly needed so that the existing tax payers are incentivized. Panelising the tax payer by tax audits are not necessary, the authorities have tax payers details already in their formats and on their annexure 8.
Ateeq said that our fiscal deficit is enhanced to 9.1 percent from 7.1 percent and domestic debt and liabilities reached Rs24.64 trillion due to massive borrowing for financing of fiscal deficit.
This is towering, only an increase in large scale manufacturing, growth in agriculture produce like cotton, wheat, vegetables and improvement in the quality of our dairy produce, we will have a easy survival by maintaining accurate financial supply chain.
For example Pakistan was the 4th largest producers of the cotton in the world but now the cotton production in the country has declined to a lowest level reaching 0.5 million bales from 1.5 million bales, the target should be 20 million bales. In the same way our dairy farming ranks 4th in the world. We waste 30 percent of the dairy produce because of low storage capacity.
Copyright Business Recorder, 2021