ICCI concerned over non-implementation of PM’s construction industry package

Islamabad : Muhammad Ahmed Waheed, President, Islamabad Chamber of Commerce and Industry has said that Prime Minister Imran Khan had announced an attractive incentive package for the construction industry which has been included in the budget but despite the passage of two months, this package could not be implemented as no department has yet issued any notification for implementation of its incentives. He demanded that the Prime Minister should take notice of this situation and issue immediate orders to all the concerned departments to implement the package in letter and spirit.

Muhammad Ahmed Waheed said that the growth of the construction industry will move the wheel of the economy faster as more than 50 allied industries were associated with this industry that will also grow fast. He said that with the acceleration of construction activities, businesses in the markets will flourish, the new investment will get a boost, thousands of people will be employed which will benefit reduce poverty in the society while construction of houses under Pakistan Housing Program will benefit low-income people. He, therefore, urged that the Prime Minister should take steps for immediate implementation of his announced package.

He said that the devastating impact of Covid-19 pandemic was still continuing leading to 40 percent reduction in industrial production. He said smart lockdown in some markets and complete lockdown in others for the last 3 months have severely affected the supplies of the industrial sector and if this trend continued, there was a danger that many companies in the corporate sector will default. In such a situation, for how long the industry would pay its factory workers and if this trend continued, unemployment would rise alarmingly in the next year.

ICCI President said that despite the significant reduction in the prices of petroleum products, its benefits have not yet reached the grassroots level. He said that the high cost of production due to high power tariffs was affecting our exports. He said that the government should have reduced the price of electricity in proportion to the reduction in the prices of petroleum products to cut down production costs and make our exports more competitive in the regional and global markets. He emphasized that the government should reduce the price of electricity, which would have a positive impact on the economy. He further said that the State Bank of Pakistan had reduced the interest rate, which was a positive move, however, he said the current situation demanded that the interest rate should be further reduced to 4% would reduce the financing cost for the private sector and help it to expand its businesses and make new investments. It would ultimately lead to an acceleration in the pace of economic recovery.

Mohammad Ahmad Waheed said that the new federal budget has proposed to impose a heavy luxury tax on houses and farmhouses in Islamabad which was unjustified. He said that last year MCI had increased the property tax in Islamabad by 300% while the citizens of Islamabad were already paying six types of taxes on their houses. In these circumstances, there was no justification for the luxury tax in Islamabad, so the decision should be withdrawn immediately. He further said that a fixed tax for small traders was announced in the budget, but its details have not come out as yet.