ISLAMABAD, Jun 18 (APP):Special Assistant to the Prime Minister (SAPM) on Industries and Production Haroon Akhtar Khan on Wednesday said the new industrial policy will revitalize industrial sector in the country besides it create employment opportunities, boost exports and foster innovation and inclusive economic growth.
Addressing the National Regulatory Reforms Conference, Haroon said this policy aligns closely with the broader mission of the Prime Minister economic initiative, to transform and advance Pakistan and make it an investor’s hub.
At present, three key factors affect our economic competitiveness, which include power tariffs, high interest rates and elevated tax burdens, he observed.
“ We are actively addressing each of these to create a more business-friendly and export-driven economy, a exporters are our lifeline. We must ensure that our exporters become competitive”, he added.
Once we build up our exports and restore the confidence of our business community and investors, capital will begin to flow into Pakistan—first from domestic investors, and then, naturally, foreign investors, he added.
He said that government taking steps making it easier for investors to bring in capital.
Haroon Akhtar said that the national industrial policy is a central pillar of the Prime Minister’s broader economic initiative for the transformation and advancement of the country.
He said that the incumbent government inherited a fragile economic situation. Inflation was at 38 percent, the policy rate stood at 22 percent, foreign exchange reserves were drastically low, and corporate taxes had surged to unsustainable levels.
Due to the prudent structural reforms agenda of the current government now, the country is on the path of stabilization as inflation has dropped to a minimal 1.5 percent, the policy rate has been reduced to 11 percent, and foreign reserves have improved significantly.
He said that the government was working on a mechanism to make the local industry more competitive and enhance exports.
The current federal budget reflects further progress. Corporate tax rates have been reduced and the super tax has been reduced signaling that this tax is a temporary measure.
He mentioned that macroeconomic indicators are showing resilience and the government has demonstrated a firm resolve to reduce corporate disadvantages to the levels we saw just a few years ago.
Now, we need to witness the trickle-down effect. It’s time to turn the economy around. We must move toward realizing our dream of achieving a GDP growth rate of 7%—and sustaining it for at least a decade, he added.
