LAHORE: Pakistani Prime Minister Imran Khan has proposed a five-year tax exemption for foreign businessmen to encourage them to invest in the country.
He made the statement at a gathering in Lahore to present an industrial package aimed at boosting the country’s corporate activity.
The premier, speaking during the occasion, stated that countries improve as a result of industrial development. “Without a manufacturing basis and industrial growth, no country can become great,” he remarked.
“A country advances when wealth is created; without it, it cannot progress,” he said, adding that when a government adopts laws that discourage profit-making, it stymies industry development and lowers investment opportunities.
He went on to say that when industries make money, other investors are drawn to that industry.
Promotional incentives for industry
1- New industrial units are being built, as well as old facilities being expanded and modernized.
2- 5% tax on all funds invested across the board
3- Rs. 50 million as a minimum investment
4- Establishment of an industrial unit as a business
5- Commercial production will start by June 30th, 2024.
6- Previous Amnesty Scheme recipients from 2018 and 2019 are not eligible.
7- Those who have defaulted on a bank loan in the last three years are not eligible.
Incentives for bringing ailing units back to life
1- This rule only applies to businesses.
2- Industrial units that have amassed losses for three years in a row will be classified as sick units.
3- The acquiring business was allowed to deduct the ill unit losses from its income for three years.
4- The sick unit will be restored within three years of its acquisition.
Foreign investment incentives in the industrial sector
1- Pakistani citizens who have been out of the country for five years and who have disclosed overseas assets are eligible to invest.
2- A one-time tax credit equal to 100 percent of the remittance’s PKR equivalent will be available in 5 years.
3- An investment in a new industrial unit will be made.
4- Commercial manufacturing will begin on June 30, 2024.
5- A new industrial unit will be established.
PM Imran Khan stated that previous policies were unfavorable to industrial expansion, as a result of which the country’s exports stalled owing to a lack of a long-term strategy.
“Pakistan never paid attention to the export industry; every time we had a dollar shortfall, we went to the International Monetary Fund (IMF),” he said.
The premier revealed the specifics of the package, saying that the government has prioritized the growth of small and medium businesses, for which it has implemented policies and created infrastructure.
Incentives for Pakistanis living in other countries
When asked about the five-year tax break for foreign investors, Prime Minister Nawaz Sharif replied that if they invest in Pakistan’s industries, the country will develop further.
“Facilities would be provided to abroad Pakistanis who are having difficulty investing in the country,” he stated, stressing the fact that whenever foreign Pakistanis buy land in Pakistan, it is illegally occupied because they are not present to look after it.
‘I should have made an amnesty announcement sooner.’
He brought up the issue of the growing current account deficit throughout his speech.
“The largest problem we have is a current account imbalance, which is caused by sluggish exports,” he stated.
In January 2022, Pakistan’s current account deficit — the difference between the country’s higher foreign expenditure and low revenue — reached a 13-year high of $2.6 billion, owing to a jump in import payments due to rising commodity prices on the international market.
This was the largest monthly current account deficit in history. The last time it was this high was in October 2008, when the value was $2.03 billion.
PM Imran Khan confessed that when he was sworn in as Prime Minister in 2018, he should have proclaimed an amnesty for the industry right away.
The IT sector is experiencing rapid growth.
He expressed optimism for the IT sector, saying that it will have the fastest development; yet, he regretted that we approach it like other businesses.
“We are attempting to make the country self-sufficient, and the business community will play a significant role in this,” he stated.
The Prime Minister has directed the Punjab Chief Minister to take action against encroachers.
On March 1, 2022, Prime Minister Imran Khan meets with Punjab Chief Minister Usman Buzdar during his day-long visit to Lahore. PID (Personal Identification Number)
On March 1, 2022, Prime Minister Imran Khan meets with Punjab Chief Minister Usman Buzdar during his day-long visit to Lahore. PID (Personal Identification Number)
Earlier, during a meeting with Punjab Chief Minister Usman Buzdar, the premier instructed him to take proactive efforts to provide maximum relief to the people of Punjab and to ensure the delivery of quality services.
According to Radio Pakistan, PM Imran Khan also ordered Buzdar to defend people’s rights, lives, and property, as well as to take strong action against encroachers, hoarders, and other miscreants in society.
The premier was updated on development projects taking on across the province during the meeting.
PM on the way to Lahore for the day
The premier was accompanied on his day-long trip by Federal Minister for Education Shafqat Mehmood, Energy Minister Hammad Azhar, Aviation Minister Ghulam Sarwar Khan, Industrial Minister Khusro Bakhtyar, and Adviser to the Prime Minister on Commerce Abdul Razak Dawood.
Members of Parliament from Rawalpindi, Bahawalpur, Multan, and Sahiwal will also meet with Prime Minister Imran Khan.
He is also expected to see the Chaudhry brothers of the PML-Q, according to Pakistani sources.
Meanwhile, the weekly cabinet meeting has been rescheduled due to the premier’s trip to Lahore.
