LAHORE: Ali Alam Qamar, Entrepreneur, industrialist and Director of Flying Group of Industries, highlighted the pressing challenges confronting the newly elected government, emphasizing the critical issue of tackling the over Rs 2 trillion circular debt.
Talking to Business Recorder, Qamar expressed concern over the mounting receivables, urging swift action to address the crisis.
Qamar identified the need to bring key sectors such as retail, real estate, and agriculture into the tax net, in alignment with commitments made to the International Monetary Fund. He underscored the importance of automation in the Federal Board of Revenue to enhance efficiency and revenue collection.
Addressing the looming burden of foreign debt repayment, Qamar proposed strategies to boost exports and alleviate financial strain. He advocated for the establishment of a Special Purpose Vehicle (SPV) to consolidate receivables from major energy entities, presenting a viable solution to the circular debt issue.
In addressing the energy sector challenges, Qamar emphasized the transition from imported fuel to local coal and renewable energy sources to reduce dependency on costly imports. He commended recent initiatives such as the agreement between K-Electric and Hub Power Company Ltd to utilize local Thar coal for electricity generation.
Furthermore, Qamar stressed the urgency of integrating additional electricity generated under the China-Pakistan Economic Corridor (CPEC) into the national grid and advocated for the privatization of Distribution Companies (Discos) to curb power theft and minimize losses.
Highlighting the need for collaborative efforts, Qamar proposed a comprehensive charter of economy involving all stakeholders to chart a sustainable economic course for the next decade. He endorsed demonetization as a means to combat counterfeit currency, corruption, and tax evasion while promoting digital payments.
Calling for a revamped industrial policy, Qamar urged for increased access to loans for small and medium enterprises (SMEs) and incentivized support for entrepreneurs to foster innovation and drive economic growth. In conclusion, Qamar urged the government to prioritize economic reforms and strategic initiatives to address the formidable challenges ahead.
Copyright Business Recorder, 2024
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