FAISALABAD: Minister for Planning, Development and Special Initiatives Professor Ahsan Iqbal on Wednesday said the country’s Small and Medium Enterprises (SMEs) had the potential to generate around $40 billion annually through export-oriented businesses.
Addressing a Karandaaz report-launching ceremony via zoom link, he stressed the need for making the tax collection system more effective and increasing the country’s exports on a sustainable and war-footing. “We will have to promote the export culture in the country.” He said the incumbent government was facing serious economic challenges that could be tackled with an effective taxation system, increase in exports, productive use of foreign remittances and foreign investment.
The minister said the federal government’s tax-revenue and non-tax revenue stood at Rs5,200 billion, whereas “we inherited Rs5,000 billion liability on account of debt payment.” Ahsan Iqbal vowed that the government was committed to taking the tax-GDP rate from 9.5 per cent to 18 per cent with its prudent economic policies.
He was of the view that the country would have to explore new resources to increase its income, otherwise all generated revenue would be spent in the debt servicing. The minister suggested that foreign remittances should be used in different businesses instead of investing in the real estate sector as ” the government is taking steps to facilitate investment in business.”