The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday called for single digit interest rate to encourage investment in the country. FPCCI President Senator Haji Ghulam Ali, during a Meet-the-Press at Karachi Press Club, strongly criticised the high interest rates regime saying that high interest rate and energy shortage are major hurdles in attracting new investment in the country.
These two problems need to be addressed urgently for the betterment of economy, he added. On the occasion, acting secretary Press Club Muhammad Arif, President Tahir Hasan Khan, FPCCI Vice Presidents S Khalid Tawab, Engr. Muhammad Usman Shaikh and Dawood Usman Jakhura, also criticised the government policies saying that ministers and other government officials are not focusing on economy despite the fact that strong economy is the answer to all ills. "Soviet Union was rich with nuclear power and other weapons but it was disintegrated only because of deteriorating economy," he remarked.
He urged the government functionaries and parliamentarians to spend over 50 percent of their working hours exclusively for the promotion of industrialisation and trade in the country. Senator Haji Ghulam Ali said that rising foreign debt is a matter of concern, as it will cast negative impact on the economy of Pakistan. "We should realise that the IMF and other international financial institutions are not our friends and the government should immediately suspend the loan programme with the IMF," he added.
He said so far the industry is facing gas and power shortages and reiterated the business community's demand that trade and industry must be provided uninterrupted gas and power at affordable tariffs. Long-term policies are needed to overcome energy crisis, he added.
China was so far in the economy, but now with long-term effective policies it has become industrial and manufacturing hub in the world as their investors are getting smooth supply of electricity and gas free of cost besides other utilities and standard infrastructure, he said.
The industrial hub of the country - Karachi is also facing worst law and order situation and traders are forced to go on strike, he said and added that this is a serious concern for the business community, which should be effectively addressed by the government. He demanded that tax rate should be brought down and the government must take some steps to increase its revenue by widening the tax net and checking alleged corruption in tax collection system.
"We want to pay tax but firstly the government should realise that the industry can not bear huge burden of taxes," he added. Ghulam Ali said over 100 million youth is jobless and pose a serious threat to the country. He urged the government to provide soft loans to youth at 3 or 4 percent mark-up for starting their small businesses.
He said FPCCI was also fighting for the rights of small traders of the country at different forms and soon small chambers would be set up at district level to ensure their full participation and representation on big platforms. The FPCCI President emphasised that the government should take private sector on board while making important decisions, which have a direct bearing on the trade and industry.
He quoted examples of Turkey and some other countries where annual budgets are not approved until their federation of chambers give their assent. "We are preparing Budget recommendations in consultation with all major trade bodies for a trade and industry friendly budget," he added. Highlighting the role of FPCCI, he said, being an apex trade body of the country it has been and would be using all channels and options for trade and industrial growth in the country.
The FPCCI will fulfil its social responsibility also by opening its facilitation centers at its offices to provide information about the investment opportunities in different sectors. He called upon masses especially youth, professionals and media to support trade and industry as what he said this century is of growing economies and not war.