BUDGET 2021-22: COVID-19 has changed the world and has ruined the economies of the world. Pakistan is also hard hit due to this pandemic but fighting back to survive. Pakistan has blessed with great resources and human strength they the major contributors to the Forex, our overseas workers are remitting a fortune to Pakistan because they love their motherland but these remittances can be increased manifold if SBP and all the other banks just play their role a step ahead to ensure payments sent to their families by overseas Pakistanis are at once delivered in the shortest periods.
It is a regime of digitalization, IOT, Computers, E-Commerce & Hi Technology & we need to adapt them to cope with the world. Skilled Labour is a blessing to any country of the world and we need to empower our human resources to play their part at home and abroad to earn much more money with better and update skills. The economy of Pakistan is linked with SMEs right from day one.
Pakistan can become a strong economic power by promoting and supporting SMEs. The industrial revolution is at our doorstep but we are banking on dead horses. All government-run industries must be at once delivered to the private sector to save the country from these white elephants and deliver those who can generate employment & pay taxes.
Our Government is doing a great job to help the new start-ups and the emerging entrepreneurs but this is not enough. SBP must raise their hand to invite new businessmen and support their ventures with the help of SMEDA and other related departments. A comprehensive plan should be formulated for providing loans at the lowest interest rates. He said that the availability of tax incentives for new industries should also be ensured. Newly started domestic industries should be exempted from all taxes & surcharges and other duties for 3 years. Industrial estates and industrial areas should be established which must cater to the needs of SMEs.
It is required that special workshops and research laboratories should be set up in all the villages and special development programs of domestic lead industries should be set up in each village according to the local expertise & capacity. TEVT is most important & establishment of special technical institutes and universities should be developed to cater to the needs of the skilled workforce for domestic industries, Sick industries in the private sector must be rehabilitated to generate employment & to reduce poverty.
The business community is very loyal & always fighting to strengthen the country’s economy and exports. The industrial revolution will solve all problems of Pakistan for which must keep our hard work with dedication & commitment to boost industrialization by promoting industrial trends. An increase in growth is welcome & most comfortable but so far the desired results are not found. The reforms aspect should be highlighted in all the lines of the budget 2021-22.
The reduction in the rates of other taxes, including the reduction of sales tax, has become inevitable. The taxation system will also have to be improved to increase the tax net?large number of taxes may be merged to lower the number of taxes may be 3:4 only Public sector development program should be strengthened and more funds should be set aside for health and education. Pendency of public sector programs creates distrust in the mind and hearts of a common citizen, industrialization is the best way for the common man to get rid of inflation and unemployment.
Agriculture is also completely lost in our country we must pay full attention to our Agri needs and devise a systematic Agri policy with hybrid biotechnology to get more yields and ensure food security. All we need to promote the Agri industry to provide seeds, tractors, fertilizers, and easy loans for agriculture at the doorsteps for more food, there is a need to think about modern farming methods and the use of modern machinery. Water management is also a great factor to promote agriculture and we must raise our water conversation programs with careful use of the available water. Hydro dams like KALABAGH DAM are the bloodline of our future water & food needs. The present Budget of Pakistan is a great moment for the Industry to rebuild Pakistan. A clear and tax-free budget for 2021-22 will start the engine of growth. Let us do it for Pakistan.
The writer is AMB: Rehmatullah Javed SME Expert of Pakistan.
