Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Friday appreciated that initiatives on account of poverty alleviation, increasing the amount of loans from Rs 1,800 billion to Rs 2,055 billion for the businesses and the youth, abolition of duty on solar energy for tube wells and agri seeds in federal budget 2023-24. Sharing their views on the federal budget with media here at FPCCI Regional Office, the Federation’s President Irfan Iqbal Sheikh, Regional Chairman Muhammad Nadeem Qureshi and former FPCCI president Mian Anjum Nisar also welcomed the scheme for youth, citing that it would enable the youth to create their own employment and business in that manner as new institutions.
They added that 50 percent reduction in the tax rate for the youth was also welcome. Information Technology industry, they said, was growing rapidly in Pakistan, and its share in exports was also increasing rapidly. For the benefits and incentives that were announced in the budget, in which this sector would be given the status of SMEs (Small and Medium Enterprises), it would certainly lead to the development of IT not only in the country but also in IT exports. FPCCI office-bearers suggested that government should enhance Rs 5 billion allocation for women empowerment while re-considering the current situation and the proportion of women in the population.
FPCCI President said that merit and priorities must be well considered in the utilization of Rs 1,150 billion development budget. Irfan Iqbal Sheikh mentioned that there was an initiative to enhance services exports which also needed to be revisit as the volume of services sector exports was not significant. The allocation of Rs 491.3 billion for infrastructure was a good initiative for which the FPCCI; in its budget proposals; emphasized that there was a dire need for attention on infrastructure. Irfan Iqbal Sheikh highlighted that increase in the support of Real Estate Investment Trust (REIT) would make it easier to complete the pending projects in the sector.
Irfan Iqbal Sheikh said that extending the warehousing period of perishable items from one month to three months would facilitate trade. In order to reduce the clearance time, importers had also been given the facility in the current budget that they could go to adjudication through Custom Computerized System. New measures including rephrase of the definition of smuggling would help prevent smuggling.
He hoped that abolishment of RD (Regulatory Duty) on special steel round bar would help the sector growth and bring down prices – which would provide relief to the poor. Removal of RD on equipment of IT sector was a good step, which would support the growth of this sector. President Islamabad Chamber of Commerce and Industry (ICCI) Ahsan Zafar Bakhtawari Friday said that in the context of Pakistan’s current circumstances, it was impossible to give a budget better than this. Talking to a private news channel, the President ICCI said that in the current budget, the government’s incentives to various sectors, including agriculture, IT, SMEs, overseas Pakistanis and education, the country would witness boom in foreign direct investment and remittances in the coming years.
He further said that the export target of 30 billion dollars given in the budget was also achievable He further said that this budget would put the nation on the path of progress in the upcoming years. Meanwhile, Secretary General of OICCI (Overseas Investors Chamber of Commerce and Industry) Abdul Aleem on Friday said that the government’s announcement of positive measures for the Information Technology (IT) and agriculture sectors, as well as the promotion of Small and Medium Enterprises (SMEs), is commendable.
He also expressed support for the increase in salaries and pensions of government employees, considering them justified. However, in a statement Abdul Aleem noted that upon the initial assessment of the budgetary tax measures, it appears to be an interim budget with short-term measures focused on specific sectors, lacking comprehensive measures to stabilize the economy. He pointed out that there were no specific measures announced to support the revenue targets of Rs 9.2 trillion, nor were there bold steps to broaden the tax base in the country.
Additionally, Abdul Aleem mentioned the absence of measures to incentivize investment in manufacturing and other job-creating sectors. He also stated that there were no special measures announced to attract large foreign investments. Overall, while appreciating certain aspects of the budget, Abdul Aleem highlighted the need for more comprehensive and long-term measures to strengthen the economy, expand the tax base, and encourage investment in various sectors.
President of Islamabad Industrial Association (IIA) Muhammad Ahmed on Friday lauded the federal budget 2023-24, saying that Information Technology (IT), Small and Medium Enterprises (SMEs), solar, and agro-based industry would take a boost after getting tax exemptions. In reaction over budget 2023-24, Muhammad Ahmed said that Super Tax has been imposed across the board on income above Rs150 million, which previously was Rs300 million and only applicable on ten sectors including banking which is against the claim that no new tax has been imposed. Leaders of IIA Usman Shaukat, Khalid Jaweed, Mian Akram Farid, Atif Ikram Sheikh, Tariq Sadiq, Mian Waqas Masood, Zakria A Zia, Aamir Waheed, Mirza Muhammad Ali, Malik Sohail Hussain, Naeem Paracha and others were also present at the occasion. He said that energy tariff for the industrial sector is very high resulting in enhanced cost of doing business compelling this sector to use energy efficient devices but duties and taxes have been increased which should be reviewed.
