ISLAMABAD: Senator Ayesha Raza Farooq is an active member of the ruling Pakistan Muslim League Nawaz (PML-N) in the Upper House of the Parliament. She is always well prepared on the topic of discussion either in the Senate or standing committees, therefore, she has been made member of a number of committees, including finance revenue, foreign affairs, national health services regulations and coordination, law and justice, devolution of powers, the project of Pak-China Economic Corridor and issue of lapse of various foreign scholarships. Recently, she graced Customs Today by accepting a request for an interview.
To a question about her views about finance policy, she said that all the economic indicators reported significant growth in national economy. Even the international monetary institutions have also acknowledged Pakistan’s economic progress. If we look at economic expansion for the current financial year, we find that it is led by services as growth in manufacturing slowed. Industrial growth was hobbled by a slowdown in large-scale manufacturing to 3.3% owing to continued power shortages and weaker external demand. Moreover, agriculture growth remained modest at 2.9%. Private fixed investment slipped to equal 9.7% of Gross Domestic Product (GDP) from 10.0% a year earlier because of continuing energy constraints and the generally weak business environment that has depressed investment for several years.
She said that Finance Minister Ishaq Dar was working day and night in preparation of budgetary proposals for the next fiscal year with which focus on providing maximum relief to the masses. Steps announced in the fiscal budget will help attracting investment and creating job opportunities for the youth as well as incentives for agriculture sector, especially loans for small farmers and waiver of duties on solar tube-wells will boost performance of the relevant sectors.
To a question about performance of the Federal Board of Revenue (FBR) in meeting the target of revenue collection, she lauded the increase in taxes on luxury items, growth in gross domestic product (GDP), decrease in inflation, increase in foreign reserves and remittances, decision to phase out Statutory Regulatory Orders (SROs) and increase in budget for Benazir Income Support Programme (BISP). Although the FBR is performing very well, more measures and steps are required to be taken to further empower the tax collection body to broaden the tax net. Actually, the Volunteer Tax Compliance Scheme is a step towards the broadening of tax net as well as documentation of the national economy. Pakistan like other underdeveloped and developing countries also faces the problem of undocumented economy. “Therefore, we need to take more steps to bring the undocumented economy in black and white form,” she said.
To a question about future of prospects of national economy, Senator Ayesha Raza said that mega projects related to economic corridor linking Kashgar in the People’s Republic of China to the Pakistani port of Gwadar could significantly boost private investment and growth in the coming years. Therefore we can expect that current account deficit to reduce marginally due to lowering oil prices and stronger growth in the advanced countries translates into an expansion in trade.
In response to a question about measures for exports promotion she emphasized on the need of a proactive and comprehensive trade policy for enhancing the exports. However, exports are expected to increase only slightly after 2 years of stagnation, as manufacturing continues to suffer under energy shortages and low cotton prices see only a modest increase. In this regard we also need a well connectivity with all the regional trade partners including Afghanistan and Iran and other neighbouring countries. Without enhancing the exports, no country can earn foreign exchange and countries with lower tune of foreign exchanges can’t meet their import bill.
She said that GSP plus status for Pakistan by the European Union was a blessing for the country. It will revive the industrial sector of Pakistan and create thousands of new jobs for the people. However, there are many challenges being faced by Pakistan to fully avail all benefits from its GSP Plus status. But with dedication and an unflinching resolve on part of the government, these problems could easily be solved.
Moreover, she said that GSP Plus status had brought Pakistan at par with Bangladesh and Sri Lanka who were already enjoying the same privileges from some time. Earlier, Pakistani exporters were at a disadvantaged position as they had to pay heavy export duty on their goods. The status has given a level playing field to Pakistani exporters to compete with them. Therefore, Ministry of Commerce is required to explore more new markets for Pakistani exports under a diversification policy. In this regard we may look forward the Central Asian countries, Far East as well as toward the potential markets in Australia and New Zealand, Japan and other countries.