President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Wednesday said despite best efforts the government has missed quarterly revenue target set by IMF which may lead to a mini-budget.
The revenue target of Rs1071 billion has been missed by Rs116 billion despite the imposition of new taxes worth Rs735 billion and holding back refunds, he said.
Mian Zahid Hussain said that the government abolished zero-rating and took heavy advance from different companies but to no avail.
Talking to the business community, the veteran business leader said that the tax collected during the last three months was 13.5 percent of Rs123 billion higher as compared to last year but were less than target which may push the government to cut developmental expenditure.
The former minister noted that turning down summary of Ogra to cut oil prices and extension in the last date of filing returns are steps aimed at increasing revenue.
The IMF has also given a target of Rs75 billion refunds which was missed by Rs45 billions pushing many exporters in a liquidity crunch which is to hurt exports.
He said that the tax target is not realistic which should be revised otherwise the tensions between the government and the business community would escalate.
Discouraging exports has reduced deficit but it has also reduced revenue which the reservations of the business community on tax measures have also deteriorated the situation.
He said that the government has failed to provide energy on economic rates to the export industry despite promises while the real estate and retail sector are shrinking and the double-digit discount rate continues to hit the economy.
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Assurances by PM, COAS to businessmen welcomed; NAB decision hailed: Mian Zahid
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Friday said assurance to the business community by COAS regarding the resolution of their problems is a welcome move which will relieve their concerns. Improve confidence and improve the business environment. The reassurance by Chairman NAB to spare the business of unnecessary harassment community will also improve sentiments, he said.
Mian Zahid Hussain said that the business community has apprised COAS regarding their concerns which include regressive tax collection drive, increasing corruption, instability, inconsistent policies etc. which has made difficult for the business to survive.
Talking to the business community, the veteran business leader said that the business leaders have also informed COAS about the increasing cost of energy, failed commitments on the part of the government and failure to pay refunds in a timely manner. They also complained about lack of direction among economic managers, and lack of teamwork which has taken a toll on the economy.
The former minister noted that the business leaders also complained about the absence of any road map for economic recovery and a contracting economy which is resulting in unemployment, defaults, and closure of businesses.
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There are no customers in markets while manufactured items are piling up in factories forcing them to cut the production on which the COAS has assured them the resolution of their problems after which the situation can take a positive turn.
He noted that economic activity and exports can pick up while a package for the real estate in on the cards which will help revive this critical sector. The losses of state-run corporations have jumped to Rs1600 billion which should be tackled sternly, he demanded.
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Mian Zahid wants issues of new sabzi mandi should be resolved
Says tensions with India, Afghanistan increasing prices; Genetically modified seed crippled agri sector
President Pakistan Businessmen and Intellectuals Forum (PBIF), President All Karachi Industrial Alliance (AKIA), Senior Vice Chairman of the Businessmen Panel of FPCCI and former provincial minister, Mian Zahid Hussain on Monday said the New Sabzi Mandi of Karachi providing fruits and vegetables worth one billion rupees daily should be modernized. The sabzi and fruit mandi is the largest in Pakistan but it is facing many problems which is not only hitting businesses but also adding to the price for end-users, he said.
Mian Zahid Hussain said that despite the lapse of twelve years to sabzi mandi is awaiting different facilities including security, sanitation, drainage, cleanliness, removal of encroachments and fire extinguishing facilities.
Talking to the business community, the veteran business leader said that the provincial government collects tens of millions of rupees from the mandi but the problems of people doing business there are conveniently ignored. A fire devastated parts of the mandi in 2013 resulted in heavy losses due to the absence of disaster management facilities but it wasn’t enough to draw the attention of authorities concerned, he said.
The former minister noted that the provision of dependable water, gas and electricity supply is also a burning issue which deserves attention of the government. All the problems including rampant bribery are adding to the cost of doing business for which masses are made to pay. He said that existing facilities are insufficient therefore new sabzi and fruit mandis should be established across the country while big cities should be given preference which will bring the rates down.
The veteran business leader said that tensions with India and Afghanistan has also increased prices which should be tackled in a proper way so that it helps bring price down.
He said that the so-called Green Revolution and GMO development has taken a toll on the land environment farmers taste and nutrition of fruits and vegetables which increasing poverty due to high cost. Many countries including Pakistan hastily adopted the genetically modified seed and passed laws which must be reversed to introduce local seed, he demanded.