The government might soon announce incentive packages for encouraging the economic activities within the country, which would incorporate the steps for the reduction of the production cost.
Zubair Tufail—President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) while conversing on Saturday with a local newspaper said that the Prime Minister—Shahid Khaqan Abbasi would soon be visiting the office of FPCCI and then there, he would be announcing the economic plan. He said that the to-be-introduced plans would help in boosting country’s exports to control the present account discrepancy.
The business community recently held meetings with the Prime Minister in the capital and asked for the reduction in power tariff by rupees three per unit to rupees nine per unit alongside the reduction in the gas infrastructure development levy.
The business community also demanded for the issuance of sales tax refunds on time, reducing the business conduction cost, equal opportunities to the Pakistani investors in CPEC, tax reduction, refurbishing the Trade Development Authority of Pakistan (TDAP)/ expo centres and elimination of withholding tax.
The Prime Minister after consulting the Federal Board of Revenue, Ministry of Finance and other ministries would decide about the incentives package for the business community.
The government is willing to widen its exports for controlling the broadening current account deficit (CAD) of the nation. As per the figures of the State Bank of Pakistan (SBP), current account deficit of the country was at $3.371 billion during July-November last year which has now doubled to $6.430 billion in the current fiscal year 2017-18 for the same period.
Pakistan is encountering an external financing gap of approximately around $12 billion in the present financial year. The country’s requirement is about $20 billion including the $14 billion projected CAD and $5.9 billion foreign debt payment for the current fiscal year. But, out of the $20 billion, the government has approximately around $9 billion, which leaves around $11-12 billion total financial gap.