fatman17
PDF THINK TANK: CONSULTANT
- Joined
- Apr 24, 2007
- Messages
- 32,563
- Reaction score
- 98
- Country
- Location
Aaj Kamran Kay Saath
Mansha wants public sector corporations privatised; Sees fraud risks in VAT; says VAT enforcement needs vision; asks govt to set aside Kashmir for trade with India
Saturday, June 19, 2010
News Desk
RAWALPINDI: Nishat Group chairman Mian Muhammad Mansha has called for the privatisation of public sector corporations, saying they are inflicting annual loss to the national exchequer between Rs300 and 400 billion. He did not take serious the controversy created due to the privatisation of strategic assets and said it has been noticed elsewhere also.
He however noted that in 1991-92 total profit of the banking sector was Rs2 to 2.5 billion that was too higher now. He also noted with satisfaction that Pakistan was not affected from the banking crisis that hurt other Asian countries in 1997.
Mansha, the richest man of Pakistan and a leading industrialist, called for practicing merit and dissolving all organisations in the public sector. However, he said privatisation did mean setting free the states concerns. Instead there has to be checks. In this connection judiciary is now playing its role.
We have to compare tax recoveries before and after the privatisation, he added. In this connection he informed that only the Muslim Commercial Bank had deposited Rs100 billion as tax in the last 20 years.
With regard to the Value Added Tax (VAT), he was of the view that the government should enforce it cautiously as there is great risk of fraud in the system. Taking part in the special series Greater Pakistan Destination Closer, Passage Difficult of the Geo News programme Aaj Kamran Khan Kay Saath he referred to the privatisation of deteriorating banking sector that had resulted in the wave of betterment.
He asserted that privatisation of the public sector would end nepotism and help overcome corruption. The Pakistani society is heading perfectly in the right direction. He said there was no system better than democracy, adding the judiciary and the media are doing well, and now some restraint is needed.
Politicians have to frame policy best suited for the country doing away with extravagance, Mansha advised. He was confident that all the pillars of the state are moving to the position where they have to be including a strong opposition. The army has also restored its position by fighting out terrorism in the north. Positive results in this connection will be visible in the next couple of months, he hoped.
He called for opening borders with India and promoting bilateral trade setting aside the Kashmir conflict. He refused to agree with the impression that after opening borders, Pakistan will not be in the position to compete with India. This never happened when the Indian borders were opened with China. The balance of payments in India now stands more than $11 billion against China.
Mansha was optimist that Pakistan shall also benefit with the opening of borders with India. One cant imagine the gains Pakistan shall reap. Lets draw a lesson from China as to how it had settled the disputes of Hong Kong and Taiwan.
Let us accept that the US is the super power and relations between Washington and Beijing have to be promoted on an equal footing. The economy of Europe will be weaker in the years to come and China will move ahead of the US, he predicted. Likewise economies of India, Indonesia and Brazil are destined to move ahead. Anyhow we may not ignore the Europeans altogether.
Democracy may not be the best system but he was sure that there is no system better than this. To a question, he admitted that there is a temporary crisis in the country because of the prevalent system and lack of good governance. But the people had grown wiser. Let there be patience as in the next elections better representatives will be elected.
When asked about the available mineral and human resources, Mansha said the country is rich in these sectors. We are also rich in water and agriculture resources and the countrys geo-political location is the best in the region. The centrality of the world is shifting and moving towards Asia. Conditions shall be better as soon as peace is restored in Afghanistan. With regard to Iran he said its potential is yet to be assessed.
He cited Bangladeshs example and said none could imagine the rate of economic growth this country had achieved where in each textile mill over a hundred thousand ladies are employed. On the contrary, he pointed out that Pakistan has plenty of cotton and investment resources. It is high time that opportunities are exploited, trade with India may be started with providing opportunities to small investors.
When asked about the influences of the US, China, Iran and Afghanistan over Pakistans foreign policy and economic advantages, Mian Muhammad Mansha agreed that it has been complex, but the country has to be focused on economic benefits.
The approach had been same after the world war and the affected countries had focused their policies in accordance with the economic gains. Asking for aid or arms from the United States is wrong and this approach has to be done away with. Being the biggest partner in the war against terrorism, we have to sit down and discuss issues with them. We deserve access to American market, as our sacrifices in the war against terror are greater.
Mansha recalled that during deliberations with the US officials we have tried to convince them to assist Pakistan in one or two major projects like Kohala and Neelam-Jhelum projects. Such projects are vital because the country is confronted with power shortage and Kalabagh Dam project had become controversial. The US had decided to leave from the region and it wont be possible unless Pakistan is stabilised.
About China, he said it is a modern and developed country and with in three years it will surpass the US. They are our neighbour and friends too, and can become Pakistans major markets. We can secure technology from China.
Pakistan has to move ahead taking along both the US and China at an equal footing. They had lot of interest in Pakistan and we can learn much from them. He was satisfied that the Chinese investment and expertise are pouring into Pakistan.
The Nishat Group chairman said that the issues of taxation and difference between income and expenditure are not as complex as they are being considered. We are habitual to take negative issues seriously. He noted that tax recoveries during the last two years have doubled. The feudal class must pay taxes but at the same time small landholders may be compensated. Tax is a must and no sector may be left out of the net.
About Afghan transit trade, he said the government has to take up the issue with Kabul as it is inflicting losses worth billions of rupees to the national exchequer. He asked the government to frame policies that are in the larger national interest. It may cause temporary setback, but in the years to come public shall take them back as it happened in India. It the wake of 1991 reforms in India Manmohan Singh was the finance minister. Due to his reforms Prime Minister Narsimha Rao lost majority. But was voted into power again in the general elections that followed. Lets be sure whoever would bring good governance, will be voted by the masses, Mansha gave the assurance.
Mansha wants public sector corporations privatised; Sees fraud risks in VAT; says VAT enforcement needs vision; asks govt to set aside Kashmir for trade with India
Saturday, June 19, 2010
News Desk
RAWALPINDI: Nishat Group chairman Mian Muhammad Mansha has called for the privatisation of public sector corporations, saying they are inflicting annual loss to the national exchequer between Rs300 and 400 billion. He did not take serious the controversy created due to the privatisation of strategic assets and said it has been noticed elsewhere also.
He however noted that in 1991-92 total profit of the banking sector was Rs2 to 2.5 billion that was too higher now. He also noted with satisfaction that Pakistan was not affected from the banking crisis that hurt other Asian countries in 1997.
Mansha, the richest man of Pakistan and a leading industrialist, called for practicing merit and dissolving all organisations in the public sector. However, he said privatisation did mean setting free the states concerns. Instead there has to be checks. In this connection judiciary is now playing its role.
We have to compare tax recoveries before and after the privatisation, he added. In this connection he informed that only the Muslim Commercial Bank had deposited Rs100 billion as tax in the last 20 years.
With regard to the Value Added Tax (VAT), he was of the view that the government should enforce it cautiously as there is great risk of fraud in the system. Taking part in the special series Greater Pakistan Destination Closer, Passage Difficult of the Geo News programme Aaj Kamran Khan Kay Saath he referred to the privatisation of deteriorating banking sector that had resulted in the wave of betterment.
He asserted that privatisation of the public sector would end nepotism and help overcome corruption. The Pakistani society is heading perfectly in the right direction. He said there was no system better than democracy, adding the judiciary and the media are doing well, and now some restraint is needed.
Politicians have to frame policy best suited for the country doing away with extravagance, Mansha advised. He was confident that all the pillars of the state are moving to the position where they have to be including a strong opposition. The army has also restored its position by fighting out terrorism in the north. Positive results in this connection will be visible in the next couple of months, he hoped.
He called for opening borders with India and promoting bilateral trade setting aside the Kashmir conflict. He refused to agree with the impression that after opening borders, Pakistan will not be in the position to compete with India. This never happened when the Indian borders were opened with China. The balance of payments in India now stands more than $11 billion against China.
Mansha was optimist that Pakistan shall also benefit with the opening of borders with India. One cant imagine the gains Pakistan shall reap. Lets draw a lesson from China as to how it had settled the disputes of Hong Kong and Taiwan.
Let us accept that the US is the super power and relations between Washington and Beijing have to be promoted on an equal footing. The economy of Europe will be weaker in the years to come and China will move ahead of the US, he predicted. Likewise economies of India, Indonesia and Brazil are destined to move ahead. Anyhow we may not ignore the Europeans altogether.
Democracy may not be the best system but he was sure that there is no system better than this. To a question, he admitted that there is a temporary crisis in the country because of the prevalent system and lack of good governance. But the people had grown wiser. Let there be patience as in the next elections better representatives will be elected.
When asked about the available mineral and human resources, Mansha said the country is rich in these sectors. We are also rich in water and agriculture resources and the countrys geo-political location is the best in the region. The centrality of the world is shifting and moving towards Asia. Conditions shall be better as soon as peace is restored in Afghanistan. With regard to Iran he said its potential is yet to be assessed.
He cited Bangladeshs example and said none could imagine the rate of economic growth this country had achieved where in each textile mill over a hundred thousand ladies are employed. On the contrary, he pointed out that Pakistan has plenty of cotton and investment resources. It is high time that opportunities are exploited, trade with India may be started with providing opportunities to small investors.
When asked about the influences of the US, China, Iran and Afghanistan over Pakistans foreign policy and economic advantages, Mian Muhammad Mansha agreed that it has been complex, but the country has to be focused on economic benefits.
The approach had been same after the world war and the affected countries had focused their policies in accordance with the economic gains. Asking for aid or arms from the United States is wrong and this approach has to be done away with. Being the biggest partner in the war against terrorism, we have to sit down and discuss issues with them. We deserve access to American market, as our sacrifices in the war against terror are greater.
Mansha recalled that during deliberations with the US officials we have tried to convince them to assist Pakistan in one or two major projects like Kohala and Neelam-Jhelum projects. Such projects are vital because the country is confronted with power shortage and Kalabagh Dam project had become controversial. The US had decided to leave from the region and it wont be possible unless Pakistan is stabilised.
About China, he said it is a modern and developed country and with in three years it will surpass the US. They are our neighbour and friends too, and can become Pakistans major markets. We can secure technology from China.
Pakistan has to move ahead taking along both the US and China at an equal footing. They had lot of interest in Pakistan and we can learn much from them. He was satisfied that the Chinese investment and expertise are pouring into Pakistan.
The Nishat Group chairman said that the issues of taxation and difference between income and expenditure are not as complex as they are being considered. We are habitual to take negative issues seriously. He noted that tax recoveries during the last two years have doubled. The feudal class must pay taxes but at the same time small landholders may be compensated. Tax is a must and no sector may be left out of the net.
About Afghan transit trade, he said the government has to take up the issue with Kabul as it is inflicting losses worth billions of rupees to the national exchequer. He asked the government to frame policies that are in the larger national interest. It may cause temporary setback, but in the years to come public shall take them back as it happened in India. It the wake of 1991 reforms in India Manmohan Singh was the finance minister. Due to his reforms Prime Minister Narsimha Rao lost majority. But was voted into power again in the general elections that followed. Lets be sure whoever would bring good governance, will be voted by the masses, Mansha gave the assurance.
