ISLAMABAD: Prime Minister Imran Khan, Tuesday, stressed upon paying taxes, while saying that exports and tax collection were the two main driving agents to boost the country’s economy, control twin deficit and not approach International Monetary Fund (IMF) again and again.
This, he stated, while addressing the inaugural ceremony of ‘14th International Chambers Summit 2022’, arranged by the Rawalpindi Chamber of Commerce and Industry (RCCI) at a local hotel, on Tuesday.
He also held ‘external shocks’ responsible for inflation but also insisted that Pakistan is still cheaper compared to other regional countries.
He also termed the introduction of ‘mini-budget’ as an effort to document the economy. Out of the total estimated Rs11 trillion retail market, only Rs3 trillion market was registered, he said.
PM Khan said that the government was making strenuous efforts to remove all hurdles and bottlenecks faced by exporters, investors and businessmen and to give a spur to the exports industry.
Mini-budget aimed at documenting economy: PM Imran
He said that Pakistan has lowest tax revenue in the world and everyone including the Federal Board of Revenue (FBR) is involved in not promoting tax culture in the country. Pakistan cannot prosper by selling vegetables and the mini-budget would not affect the common man, he said.
The prime minister further stressed upon developing a tax culture like the Scandinavian countries that have the highest tax ratio.
He observed that tax culture could not evolve in the country as the people were reluctant to pay taxes in the past, due to lack of trust over rulers who spent the public tax money on their luxurious living. He said the present government was making efforts to spend available resources on the poor segments of society.
PM Khan said that exports, foreign remittances, and tax collection are increasing significantly as these areas are on the top priority of the government.
“The country received $32 billion foreign remittances and exports are targeted at $31 billion,” he said and added the Federal Board of Revenue (FBR) has made tax collection of over Rs6,000 billion during current fiscal year. Imran Khan said that IT exports are at $3.5 billion with increase of 70 percent, while agriculture has received additional Rs1,100 billion, adding that due to an integrated strategy of the government, construction sector is also witnessing a record development.
He further said the government was constantly endeavouring to introduce incentives for ease of doing business and remove all bottlenecks, which would help increase businessmen’s profits and develop a tax culture. The government was also working on full tax automation, he added.
The prime minister said, “No government in Pakistan ever faced such big challenges like the fiscal and current account deficits. If our friends, Saudi Arabia and China, would not have helped us, we would have defaulted due to our liabilities. We had no reserves to stem the depreciation of rupee.”
He said the country’s economy was going through a stabilization phase, but unfortunately, the Covid-19 came, which posed the century’s biggest challenge.
The government not only saved the economy but also the lives of the people, he said, adding, the pandemic brought havoc across the world. In India, its economy was badly impacted with a huge death toll.
He said that he was criticized by the political opponents for not clamping a complete lockdown. But their decision of smart lockdown was being followed by British Prime Minister Boris Johnson. Then came the challenge of Afghanistan and the flight of dollars which put pressure on rupee, he further added.
The prime minister said the world also witnessed a record surge in commodity prices as the supply and demand lines were disrupted by the pandemic. The people all over the world had been facing problems, he added. About commodity prices, the prime minister said it would ease soon.
The prime minister said the expansion of industry was vital for a country’s economy.
Copyright Business Recorder, 2022
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