Pakistan Industrial and Traders Association Front (PIAF) expressing its concern over abolition of five zero rated sectors, said that it would have devastating impact on the country's exports and associated industries as well.
PIAF Chairman Mian Nauman Kabir on Saturday said the government should take prudent and business friendly decisions in the upcoming budget otherwise negative decisions would create unemployment besides causing decline in the foreign exchange earnings and government revenue.
To an estimate, the abolition of zero rated regimes would impact 30 percent decline in our exports. The two-time unsuccessful experiments of such decision in the past did not yield any positive result except witnessing huge corruption, he said.
The country's economy has been suffering hardships for the last one year. There country witnessed negligible investment during the same period while existing industries are operating for half shift due to which production is on the declining trend, he added.
Mian Nauman Kabir said the government should avoid taking anti-business decision in the budget. Thousands of people are associated with five zero rated sectors like textile, leather, carpet, sports and surgical instruments. If government avoids taking anti decision, it would not only help increase exports but also generate job opportunities, he added.
He was of the view that because of the liquidity crunch, the desired results of the GPS Plus could not be achieved. PIAF chief also demanded of the government to take steps for immediate payment of sales tax refunds and customs debate so as enable the businessmen to overcome liquidity problems.