The business community has largely termed the newly-presented finance bill as investment-friendly and positive in terms of future economic growth.
Federation of Pakistan Chambers of Commerce & Industry (FPCCI) President Daru Khan Achakzai appreciated the economic reforms package announced by the Finance Minister Asad Umar and said, “The package has accommodated the recommendations of the business community.”
He assured of all cooperation from the business community.
Achakzai said that reducing income tax rates for banks’ profits derived from SMEs, agriculture and low-cost housing financing would encourage investment and business expansion.
FPCCI Senior Vice President Dr Mirza Ikhtiar Baig hailed the proposal to reduce duties on import of raw materials, adding that this would bring the cost of doing business down, which was a long demand of the business community.
He said that the country’s exports would increase to $40 billion in three years.
It was opined that the withdrawal of withholding tax on bank transactions for filers would benefit both traders and common man alike. Business leaders are of the view that allowing non-filers to buy up to 1300CC cars will encourage people to become filers.
All machinery imports for renewable energy (solar and wind) power plants will be tax, customs, and levies free. Fantastic measure,” remarked columnist Mosharraf Zaidi.
All machinery imports for renewable energy (solar and wind) power plants will be tax, customs and levies free.
Fantastic measure. #MiniBudget
— Mosharraf Zaidi (@mosharrafzaidi) January 23, 2019
TV analyst Shahzad Iqbal, in his message on Twitter, said, “Call it mini-budget or call it amendment in finance bill but the changes made are very business and investors friendly… It should give business community much-needed confidence.”
Call it mini budget or call it amendment in finance bill but the changes made are very business and investors friendly… It should give business community much needed confidence..#MiniBudget
— Shahzad Iqbal (@ShahzadIqbalGEO) January 23, 2019
Renowned journalist Hamid Mir said the development will give “some relief to middle class, small traders and newspapers.”
After a long time the speech of finance minister @Asad_Umar is making me smile at least he gave some relief to middle class,small traders and newspapers
— Hamid Mir (@HamidMirPAK) January 23, 2019
“This mini-budget will have positive impact on our economy,” predicted TV anchor Kamran Khan.
On the other hand, columnist Uzair Younus argued that the finance bill will increase domestic borrowing. “I am not sure about how this will plug Pakistan’s fiscal deficit. If the fiscal deficit continues to grow rapidly, the govt will have to increase domestic borrowing, which will create inflationary pressure and may force SBP to raise interest rates,” he tweeted.
I am not sure about how this will plug Pakistan's fiscal deficit . If the fiscal deficit continues to grow rapidly, the govt. will have to increase domestic borrowing, which will create inflationary pressure and may force SBP to raise interest rates. https://t.co/CwTNUx1FRZ
— Uzair Younus عُزیر یُونس (@UzairYounus) January 23, 2019
He said the changes “should unleash significant investment in renewable energy!”
This is a major development and should unleash significant investment in renewable energy! https://t.co/LkgcW9IIqa
— Uzair Younus عُزیر یُونس (@UzairYounus) January 23, 2019
