Dr Ishrat Hussein, Former Governor State Bank of Pakistan has urged the government to analyse the needs of the people and then make next fiscal year budget according to their needs to achieve the real time and long-term economic growth. This he said while addressing a "Pre-Budget Seminar" as a key-note speaker held at Karachi Press Club jointly organised by Karachi Press Club and Karachi Union of Journalists (Dastoori).
He said that public economy and private economy are two basic economies of the country. The private economy includes the agriculture sector, which flourishing in rural areas of the country. To boost up the private economy more, the things are shifting from urban areas to rural areas, he added.
He said that many sectors related to private economy are not paying taxes and are also raising the prices after imposition of taxes. While the fixed income group people are facing problems in this regard. Dr Ishrat said that informal economic sector including boutiques, saloons, private hospitals, clinics, coaching centers and others are minting money in millions but they are not paying taxes to the government.
He said that China is saving 50 percent of its earnings while India saves 35 percent but our country's saving is only 13 to 14 percent which creates financial crisis. He said that services sector is contributing 55 percent in our GDP but they are paying only 20 percent taxes.
Dr Ishrat Hussein said until all sectors of economy pay their due taxes, things would not be better and the country will suffer for longer time. He said that until fiscal deficit, taxes and expenditures of the country would not be streamlined things would not improve. He said that the government should facilitate exporters.
Citing Bangladesh Dr Ishrat said that this country has developed its export, which stand at 16 billion dollars. Like Bangladesh, every country is developing its exports but our exporters are facing lots of problems, he added. He said that after 18th Amendment and 7th NFC Award, funds have been transferred to provinces but budget-making is still in the hands of federal government.
Now, the provinces and Centre should sit together and make a very comprehensive budget in order to address all the issues of the people and the country, Dr Ishrat suggested. He also stressed over the provinces for transaction of funds at district level as it could be invested on the basic needs of the people.
Mian Abrar, President Karachi Chamber of Commerce and Industry (KCCI) said that government should resolve the issue of energy crisis on urgent basis. He said that government has to chalk out 20-year energy plan to resolve this issue. In the last, the President KUJ-D Amir Ltif and Secretary Karachi Press Club Moosa Kaleem presented shields to both guests. President Pakistan Federal Union of Journalists (Dastoori) Idrees Bakhtiar, Treasurer Karachi Press Club Mohammad Rizwan Bhatti, Vice President KUJ-D Raja Kamran and others were present on the occasion.