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Friday March 29, 2024

PM Imran Khan tells EAC: Avoid more taxes

By Mehtab Haider & Mumtaz Alvi
April 23, 2021

ISLAMABAD: Terming inflation a big challenge, Prime Minister Imran Khan Thursday asked the Economic Advisory Council (EAC) to propose out of box solutions in the given difficult economic situation to provide relief to masses instead of imposition of more taxes.

The prime minister while chairing the EAC meeting through video link directed the forum to present roadmap for economic stability and sustainable growth. The prime minister directed the finance minister to ensure the full functioning of the Council, which makes recommendations on important issues related to the country’s economy. He said that the purpose of setting up the EAC was to take advantage of the suggestions of eminent economists in building the country’s economy on a sustainable basis.

The prime minister said that thanks to the efforts of the government, the business climate has improved and the confidence of business community has been restored. He added that the government has made every effort to not only formulate policies in consultation with the business community, but also to ensure the continuity of these policies.

He directed the EAC to propose a roadmap based on short-term, medium-term and long-term initiatives for sustainable economic stability and development to address key sectors of the economy including energy, construction, agriculture, tourism and social security.

“Areas such as subsidies, price stability, promotion of small and medium enterprises, remittances from abroad and public-private partnerships could be further regulated,” he emphasised.

Referring to the ongoing reforms in the FBR, the prime minister said that reforms in the tax system, simplification and operation of the system are among the top priorities of the government.

The EAC members vehemently opposed any move for increasing the tax burden in the coming budget and hiking electricity tariff under the IMF programme, arguing that the government should take steps to kick-start the economy for achieving inclusive and sustained growth in order to create jobs and reduce poverty. Some alternate options and structural reforms could provide solution instead of relying upon increased utility tariff such as controlling losses, improving collection, and taking other remedial measures.

The members of EAC were of the view that the people of Pakistan could not face an increased burden of taxation and higher utility prices in the upcoming budget. They proposed a higher growth trajectory that should be inclusive and sustained.

Earlier, in the first session of EAC, Minister for Finance and Revenue Shaukat Tarin chaired the meeting.

The finance minister formulated sub-groups and assigned areas for further deliberation and directed to firm-up proposals after seeking input from all concerned.

Meanwhile, Imran Khan while talking to a delegation of current and former chairmen and representatives of flour mills associations of Punjab, Khyber Pakhtunkhwa and Sindh said stabilising flour prices and ensuring uninterrupted supply was of paramount importance to the government.

“In this regard, the government will take all possible steps in consultation with all stakeholders,” he said.

The forum was told that wheat production was expected to be as per targets and estimates this year.

The meeting discussed various suggestions regarding the supply of flour in the country and its availability at reasonable prices and issues related to future strategy.

Meanwhile, Imran Khan said the programme of providing easy loans to fishermen under the Kamyab Jawan Programme (KJP) was tremendous one and it would upgrade them.

Addressing the fishermen empowerment programme under the KJP here, he laid emphasis on the measures to be taken to make the fisheries sector profitable. The PM said Pakistan had great potential in fisheries, tourism as well as agriculture sectors.

Moreover, he added that Pakistan’s coastline and rivers could be used for cage-fisheries to improve lives of the fishermen and this would also help improve nutrition and protein level of our people.

On the occasion, memorandums of understanding (MoUs) were signed between the Ministry of Maritime Affairs and four commercial banks to provide soft loans to fishermen under the KJP.

The premier acknowledged the fact that fishermen lived a very hard life and were hard working and many times they face problems on the day when they do not catch fish: Their children may sleep hungry, he regretted.

“Our small fishermen are affected (from corruption) and if it continues like this, there will be bad conditions ahead for them,” he said.

“For this scheme, I would also like to pay tribute to the four banks which have a vital role to play in Pakistan. These are the things that boost the economy,” he said.

Imran Khan was quite hopeful that this programme would improve the lives of fishermen. With regard to the provision of loans, he asked the banks to train their staff to give loans to the young fishermen.

The prime minister regretted that pollution was a major problem of Pakistan, the main reason being that cities were spreading unplanned, which was increasing pollution and other problems and secondly, agricultural land would be reduced in terms of food security.

“That’s why we are making Ravi river project to uplift our people. This has to happen in Pakistan and there is a need to become new models of cities. We are trying our best to persuade the Sindh government to build a model city at Bundle Island, where environment should be taken care of, and jobs and money should come in Pakistan,” he said.

“If cities continue to expand, they will become a torment for us, as pollution is a big problem already,” he added.

The premier pointed out that 40 percent of Karachi was made up of slums.

“We are building the new city, the whole plan is there, Japanese project Miyawaki forest is being grown at more than 50 places inside Lahore, which will provide oxygen and improve the environment,” he added.

“We have to think of Karachi as well; we have to set up treatment plants in Karachi also; the way they are polluting the sea, it is also difficult for the fishermen, because the fish will not be able to eat,” he said.

Meanwhile, Imran Khan expressed his resolve that the scourge of terrorism would not be allowed to rise again.

The prime minister said in a tweet, “I am deeply saddened by the loss of innocent lives in the condemnable and cowardly terrorist attack in Quetta.”

“Our nation has made great sacrifices in defeating terrorism and we will not to allow this scourge to rise again. We remain alert to all internal and external threats,” he maintained.