PM’s rational plan to boost economy
Courtesy:- S.Rahman
Prime Minister Muhammad Nawaz Sharif has come up with a wonderful plan not only for promotion of business but also for honouring the people who are contributing substantially towards national revenues. The beauty of this plan is that it is based on rational thinking and it has addressed the bottlenecks that had usually tended to multiply due to the failure of former governments and their planning teams to identify the real causes behind economic stagnation and decline.
In addition to this failure on the part of former administrations’ economic managers, another factor has contributed excessively to our economic decline and that has been the stubborn attitude of those in authority and their refusal to submit to saner demands and reasonable needs of business community. It was like a war between the governments and the business community rooted in officialdom’s stubborn mindsets and egos that had continued to persist for years and years together without any reason or rhyme.
Prime Minister Nawaz Sharif has done away with all those conflicting attitudes and taken the command of economic planning in his own hands with complete sincerity and seriousness of purpose. And the purpose rather the sole objective is building up a prosperous Pakistan with the help of a strong and vibrant business community. It is a globally recognized fact that business community has a key role to play in the economic expansion of a country. Prime Minister Sharif’s vast experience in his varied capacities both as prime minister for three times and as head of a successful business/industrial concern is a decided plus. It enables him to understand the genuine needs of the business community that would now be addressed making the government rules and regulations compatible with these genuine needs. A permanent mechanism has been put in place in this respect and that is the establishment of Prime Minister’s Business Advisory Council and Agricultural Advisory Council.
The aim is promoting investment and growth for which purpose investment in “Green Field Industrial Projects” would be immune from any probe/ scrutiny of source of investment if set up on or after January 1, 2014 with preconditions like (a) minimum investment of Rs. 25 Million (b) creation of at least 5 jobs (as for capital over Rs 25 million, there is the precondition of creating one additional job for each 5 million of additional capital invested).
This clearly shows the commitment of Sharif government to eradicate unemployment. Then, in order to cope with energy crisis, focus is also on Captive energy that is produced by industrial plants. In this area, Captive Power Plant established as part of a Green Field Project shall be deemed to be part of the project and the facility shall also be available to low-cost housing construction and livestock in the corporate sector. Here PM’s stress is on promoting low-cost housing which means a big relief to the people living below the poverty line. And livestock projects can bring in huge amounts of foreign exchange.
As per PM’s announcement this facility would also extend to Mining and Quarrying in Thar Coal, Balochistan and KP. However, it shall not be available to investment in these sectors: Arms & Ammunition, Explosives, Fertilizers, Sugar, Cigarettes, Aerated beverages, Cement, Textile Spinning units, Flour Mills and Vegetable ghee and Cooking.
In this manner, the government has very wisely given proper guidelines to the business community for fixing priorities as to which type of industries would not be given preference (or facilities). Well-informed circles opine that it has been done after thorough study of the saturated industries on one hand and direly needed industries on the other hand.
In the same package, extra caution has been taken on combating investment through ill-gotten wealth. As such, immunity shall not be available to proceeds of crime relating to offences under Narcotic Substances Act 1997, Anti-Terrorist Act 1997 and Anti money Laundering Act 2010.
In the area of giving recognition to taxpayers, the government must be commended for making a prestigious announcement according to which top 100 taxpayers each in four major categories will be issued taxpayers’ recognition card. Even salaried individuals will be entitled to this honour. The taxpayers’ recognition card shall entitle the taxpayer to a number of facilities like, for instance, use of VIP Lounge at airports, fast track clearance at Immigration Counters, issuance of gratis passport and annual dinner with PM at Excellence Award ceremonies (these Awards will be given to top 10 taxpayers in each category). Besides these Awards, immunity from audit, penalties and default surcharge is also being considered to expand the tax net provided the taxpayers file Income Tax Returns for the last five years or missing returns for the last five years and pay a minimum tax of Rs.20,000 per Tax Year . Many other facilities have been announced to address the concerns of existing taxpayers. In this regard one main facility is that the information in respect of existing taxpayer shall not be accessed.
The question is not that of giving immunity or facilities just for the sake of it. The fact is that the measures announced by PM Nawaz Sharif are in line with his pragmatic approach to tackle the compelling problems especially the perennial problems of economic decline and ever-widening gap of mistrust between the business community and the government.
Prime Minister Muhammad Nawaz Sharif has come up with a wonderful plan not only for promotion of business but also for honouring the people who are contributing substantially towards national revenues. The beauty of this plan is that it is based on rational thinking and it has addressed the bottlenecks that had usually tended to multiply due to the failure of former governments and their planning teams to identify the real causes behind economic stagnation and decline.
In addition to this failure on the part of former administrations’ economic managers, another factor has contributed excessively to our economic decline and that has been the stubborn attitude of those in authority and their refusal to submit to saner demands and reasonable needs of business community. It was like a war between the governments and the business community rooted in officialdom’s stubborn mindsets and egos that had continued to persist for years and years together without any reason or rhyme.
Prime Minister Nawaz Sharif has done away with all those conflicting attitudes and taken the command of economic planning in his own hands with complete sincerity and seriousness of purpose. And the purpose rather the sole objective is building up a prosperous Pakistan with the help of a strong and vibrant business community. It is a globally recognized fact that business community has a key role to play in the economic expansion of a country. Prime Minister Sharif’s vast experience in his varied capacities both as prime minister for three times and as head of a successful business/industrial concern is a decided plus. It enables him to understand the genuine needs of the business community that would now be addressed making the government rules and regulations compatible with these genuine needs. A permanent mechanism has been put in place in this respect and that is the establishment of Prime Minister’s Business Advisory Council and Agricultural Advisory Council.
The aim is promoting investment and growth for which purpose investment in “Green Field Industrial Projects” would be immune from any probe/ scrutiny of source of investment if set up on or after January 1, 2014 with preconditions like (a) minimum investment of Rs. 25 Million (b) creation of at least 5 jobs (as for capital over Rs 25 million, there is the precondition of creating one additional job for each 5 million of additional capital invested).
This clearly shows the commitment of Sharif government to eradicate unemployment. Then, in order to cope with energy crisis, focus is also on Captive energy that is produced by industrial plants. In this area, Captive Power Plant established as part of a Green Field Project shall be deemed to be part of the project and the facility shall also be available to low-cost housing construction and livestock in the corporate sector. Here PM’s stress is on promoting low-cost housing which means a big relief to the people living below the poverty line. And livestock projects can bring in huge amounts of foreign exchange.
As per PM’s announcement this facility would also extend to Mining and Quarrying in Thar Coal, Balochistan and KP. However, it shall not be available to investment in these sectors: Arms & Ammunition, Explosives, Fertilizers, Sugar, Cigarettes, Aerated beverages, Cement, Textile Spinning units, Flour Mills and Vegetable ghee and Cooking.
In this manner, the government has very wisely given proper guidelines to the business community for fixing priorities as to which type of industries would not be given preference (or facilities). Well-informed circles opine that it has been done after thorough study of the saturated industries on one hand and direly needed industries on the other hand.
In the same package, extra caution has been taken on combating investment through ill-gotten wealth. As such, immunity shall not be available to proceeds of crime relating to offences under Narcotic Substances Act 1997, Anti-Terrorist Act 1997 and Anti money Laundering Act 2010.
In the area of giving recognition to taxpayers, the government must be commended for making a prestigious announcement according to which top 100 taxpayers each in four major categories will be issued taxpayers’ recognition card. Even salaried individuals will be entitled to this honour. The taxpayers’ recognition card shall entitle the taxpayer to a number of facilities like, for instance, use of VIP Lounge at airports, fast track clearance at Immigration Counters, issuance of gratis passport and annual dinner with PM at Excellence Award ceremonies (these Awards will be given to top 10 taxpayers in each category). Besides these Awards, immunity from audit, penalties and default surcharge is also being considered to expand the tax net provided the taxpayers file Income Tax Returns for the last five years or missing returns for the last five years and pay a minimum tax of Rs.20,000 per Tax Year . Many other facilities have been announced to address the concerns of existing taxpayers. In this regard one main facility is that the information in respect of existing taxpayer shall not be accessed.
The question is not that of giving immunity or facilities just for the sake of it. The fact is that the measures announced by PM Nawaz Sharif are in line with his pragmatic approach to tackle the compelling problems especially the perennial problems of economic decline and ever-widening gap of mistrust between the business community and the government.
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