Revive Manufacturing & Facilitate Rapid Growth of The SMEs
Imran Khan and his team from PTI (Pakistan Tehreek-e-Insaf) promised us:
Unlike previous governments, PTI is committed to delivering an industrial strategy that contributes to growth and employment, and encourages SMEs to scale up and move toward value-added exports.
Pakistan’s manufacturing sector is uncompetitive in the region and lacks the requisite infrastructure to sustain growth and explore new avenues. Not only is doing business-as-usual difficult but the energy cost is high, tax policy is detrimental, monetary policy is suboptimal, technology is obsolete and our human capital skill level is low which contributes to low productivity, lesser innovation and a slower growth rate.
We will establish pilot SME Incubators across Pakistan with:
Improved access to funding
Advanced technology to facilitate innovation
Efficient transport & warehousing facilities
Partners for Joint Ventures
Cost sharing solutions
Technical assistance on tax, legal and regulatory compliance.
We will launch a ten-year incentive plan for rapid growth of the SME sector including tax holiday on new investments for the first 3 years and 50% tax rate in next 7 years, and a withdrawal of minimum tax on turnover for the first 3 years and then tax at half the rate for the following 2 years.
We will transform export processing zones with leaner processes and upgraded infrastructure.
We will ensure that export-oriented sectors and allied industries will be 100% zero-rated and install a mechanism for faster refunds on income and sales tax.
We will facilitate imports of manufacturing inputs (e.g. synthetic fiber) at low tariffs.
We will encourage higher value-added exports in Sunshine sectors (agriculture, garments, light engineering).
We will introduce cascading tariffs on raw materials, intermediates and finished goods to move production towards value-added exports.
You can read these promises in the complete manifesto document released by PTI available HERE in English and HERE in Urdu.
Find below the expert`s analysis on the progress of above promise :