KARACHI: Industry set up in Pakistan, especially in Karachi, has become almost impossible because of exorbitant land prices, dilapidated infrastructure and paucity of utilities like power and gas. We see no head way from current federal and provincial governments and what to talk of local government, which is missing, said Ateeq-ur-Rehman - economic and financial analyst.
No national economic progress is attainable unless there is industrial growth in a country.
Whether it is large scale manufacturing or small scale, both are the eminent for economic prosperity and achieving the GDP goals.
He said on the top of everything in the recent finance supplementary bill, government has imposed 17 percent sales tax on the import of plant and machinery which makes capital expenditure more expensive than before in putting up new industries whether large or small.
Since we are facing serious energy crisis in terms of high cost in tariff of electricity, gas and petrol, the solar and wind power plants are the alternate solutions to overcome the energy requirements of an industry. The federal government has removed tax exemptions on the Imports of solar panel and its allied products in mini budget and imposed 17 percent sales tax on the import of it.
This is discouraging for putting up new industries, said Ateeq.
Further, extremely low gas pressure and frequent unavailability is creating problems for the industrial areas to run the existing mills and fulfil their export commitments well in time. Therefore, question of putting up new industries does not arise.
Copyright Business Recorder, 2022