Business community demands another incentive package

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Business and industrial community alike Saturday urged the government to announce another incentive package immediately to save economy from collapsing besides further reducing policy interest rate to 5 percent to offset gradually the negative impact of coronavirus.
SAARC Chamber of Commerce and Industry (CCI) President designate Iftikhar Ali Malik discussed the plight condition of the business community with the veteran trade leader and patron-in-chief of United Business Group S.M. Munir on telephone and both the leaders were agreed that the recent incentive package announced by Prime Minister Imran Khan for industry and State Bank of Pakistan slashing interest rate to 9 percent are not enough for the revival of the industry as the damage is colossal done to local industry in Pakistan due to coronavirus.
They have urged the State Bank Pakistan to further cut policy rate for easy access to finance for the local industry and exporters who are confronting new challenges and uncertain conditions.
Iftikhar Malik said the value-added sector demanded immediate payments of sales tax refunds and rebate, waiver of mark-up in export refinancing and relaxation in loan repayments, deferment of payment of utility bills and waiver of surcharges for at least next three years, restoration of zero-rated sales tax regime and exemption from welfare fund contributions.
He said that the government’s resolve to contain the spread of virus was commendable and foreign industries were now considering relocating to Pakistan due to it. On behalf of the manufacturers, he said that incentives such as the cut in import duty on the required raw materials must continue unabated as it would ensure an economic stimulus.
He said the global oil price reduction comes as a mercy at a time when the entire machinery has shifted gear on exploiting the optimum export potential.

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