Published Date: Jan 27, 2019
Pakistan to present ‘Medium-Term Economic Framework’ next week
Minister of State for Revenue Hammad Azhar has said that the government will announce Medium-Term Economic Framework in the next week. Further explaining the need of framework, he said that the supply-side measures will be taken to enhance exports and investments.
Speaking to the audience at “Economic Reforms— Way forward”, a public seminar arranged by Sustainable Development Policy Institute (SDPI), in capital city Islamabad, he said that, the government on right course towards direct taxation regime while gradually curtailing the indirect taxation Hammad Azhar said that our economy is consumption based economy, where in the last ten years our fiscal and monitory policies failed to revive growth and facilitate investments in the country. He said that his government has taken tough measures which now resultant in the stabilization of the economy.
The sole aim of this economic reform package was to boost the supply side of the economy and to enhance production and exports to its true potential, he added. Moreover, he said that his government has proposed in this Economic Reform Package a simplified and friendly tax regime to ensure ease in doing businesses.
While responding to a question, he said that his government neither planning nor in favor of any amnesty tax regime so far. Haroon Sharif, Chairman, Board of Investment (BoI) said that all foreign state visits of Prime Minister were fundamentally to reach out investors and investments to get economy out of the crisis.
He said that at BOI our objectives are 4-fold: increasing productivity, technology transfer, facilitate investments that support the export sector and job creation. He said that phase one of CPEC has become mature and in second phase we have five concrete proposals from China, Saudi Arabia, United Arab Emirates, Malaysia and Korea in the sectors of oil industry, renewable energy, hospitality and tourism.
“The feedback that we receive from the investors and business community was on taxation structure which is repressive, inconsistency in policies and lack of contract enforcement capacity” said Haroon adding that with the help of technology the government reduce taxes to 16 from 47 types of taxes which is a significant improvement.