The American Business Forum (ABF) has handed over budget proposals to the government with prime urge to encourage investment in the knowledge-based economy through targeted fiscal measures. President ABF Salim Ghauri has said that sectors like Information Technology, Pharmaceuticals and Biotechnology are the cornerstone of the New Economy and can help Pakistan diversify its export portfolio and reduce its risk from exposure to crop-risk and natural disasters. Increased investment in these sectors yields the added benefits of enhanced FDI, human development and employment of educated youth, reversal of brain drain, technology transfers and skills and productivity up gradation, he added. President ABF said the employees who are providing I.T. services in the I.T.
Industry should be given special tax credits and tax exemptions in their salary income in order to encourage them to work in I.T. Industry in the country and not to go abroad for jobs. On pharmaceutical sector, Salim said, the ABF has proposed to grant a 10-15 year tax holiday to those units who invest in and obtain international quality approvals, such as WHO, PICS or EU/USFDA certification.
