LAHORE: Federal Minister for Industries and Production Rana Tanveer Hussain terms the Federal Board of Revenue’s (FBR) policies a hurdle in the way of economic growth and urged the business community to come forward and lead the government’s economic revival agenda.
“The FBR policies are barriers to growth due to excessive taxation,” the minister deplored while speaking here at the Lahore Chamber of Commerce & Industry (LCCI) on Saturday.
“However, I am happy to see your proactive approach in addressing business challenges despite various issues,” he added. He urged the business community to aim for exports of $100 billion over five years, exceeding the government’s target of $60bn.
He claimed that the Economic Policy Reforms, introduced by the Nawaz government in 90s, were adopted by the former Indian prime minister Manmohan Singh which continue to benefit India today.
Announces plan to reduce land prices in special economic zones
The minister said the government is committed for economic revival through collaboration with the business community, as Prime Minister Shahbaz Sharif’s decisive measures have been instrumental in stabilising the economy, particularly during his last tenure of 16 months. “He averted the risk of default and setting the nation on a path toward recovery.”
He underscored the PM’s consistent call for a “Charter of Economy” to ensure sustainable economic progress. He praised the economic reforms initiated under the different tenures of PML-N government.
Rana Tanveer Hussain said a review of agreements with Independent Power Producers (IPPs) has resulted in lowering electricity costs with further reductions expected by April to ease production expenses. He said that interest rates had been reduced from 22 per cent to 12pc within 10 months. He said SBP [State Bank] is independent and the government cannot interfere in its matters.
Calling for investment in research and development, the minister stressed the need to support the industrial and agricultural sectors, encouraged exporters to focus on value addition and explore emerging markets such as Central Asia and Africa.
He also announced plans to reduce land prices in Special Economic Zones (SEZs) and Export Processing Zones (EPZs) and to develop SEZs on Pakistan Steel Mills’ land.
LCCI President Mian Abuzar Shad, while speaking on the occasion, raised concerns over rising energy costs, MDI charges on inactive industrial units and the high policy rate, which, though reduced to 13pc, remains uncompetitive compared to regional countries.
He emphasised the need to reduce the rate to single digits to encourage investment.
The chamber president also called for measures to address the exorbitant prices of industrial land, which have reached Rs50 million per acre, hindering investment and limiting the competitiveness of exporters in global markets. He stressed the importance of ensuring the availability of raw materials, such as metals, steel and textiles and urged cascading tariffs to avoid industrial distortions.
Mr Abuzar proposed establishing Export Promotion Sectoral Councils led by the private sector under the Ministry of Industries to strengthen value chains across various industries.
He also advocated the creation of new SEZs and EPZs in Lahore to address the capacity constraints of existing industrial estates and suggested formulating a 20-year industrial master plan to set up industrial zones in every district.
Published in Dawn, January 19th, 2025