Cheetah786
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LAHORE: Businessmen are preparing themselves to receive the upcoming budget with more despair and anxiety, as the government is not ready to pamper the manufacturing sector anymore.
It is interesting to note that both the Prime Minister and his advisor on finance, Dr Salman Shah, have almost closed their doors on representatives of leading manufacturing sectors like textile and industry. Intensity of the situation can be judged from the fact that All Pakistan Textile Mills Association (APTMA) has approached President Musharraf through Ch Shujaat Hussain with a request to intervene in the situation and ask the Prime Minister to listen to their budget demands.
Similarly, Advisor to the Prime Minister on Finance Dr Salman Shah is also avoiding the sugar industry despite rescheduling his meeting with representatives of the Pakistan Sugar Mills Association (PSMA) two times in the last few weeks. As a matter of fact, both the Prime Minister and his advisor on finance have been harsh over the âinefficiencyâ of the textile sector and industry sources point out that both of them feel no harm if a few hundred units are closed across the country.
(now these bastards will learn to stand on there own feet.no more government hand outs.this kind of businessman don't create any jobs but cost the taxpayers money and are always crying.good riddance)
The Rs 29 billion rescue package for the textile industry, announced in last budget had annoyed few segments of the industry, particularly the spinning and weaving. The spinners, as a matter of fact, got irritated over the situation and they have parted their ways with APTMA in Lahore and formed a separate group called All Pakistan Textile Association (APTA). The APTA bigwigs believe that as many as 200 industrial units would close down anytime after budget if the government does not announce any relief package. A few of them have asked for an exit strategy, urging the government to give them clean chit regarding their liabilities and they would shut down their units immediately.
The sugar industry too is not happy with the government. According to the PSMA people, the government offered a subsidy of Rs 18 billion in terms of import of sugar from outside Pakistan. Now, they say, the commercial importers are planning to import sugar from India when the country already has surplus sugar. The industry gurus are actively pursuing the Prime Ministerâs Advisor, as the Prime Minister himself is not ready to talk to them, for increase in import duty on sugar from existing 15 percent to 30 percent. However, no major breakthrough is expected ahead of budget.
The cement industry is also not happy with the government for its actions to control cement prices. Similarly, the cement industry is also demanding removal of remaining Central Excise Duty in the budget, which again looks like a far-fetched idea.
The value-added sector (knitted and woven garments) is crying for extension in 6 percent R&D Fund for another year, which is likely to be suspended by June 10 but the government is not ready to extend any commitments on this front. (with this kinds of buisness man no wonder our tax collection is no where near GDP)
As a matter of fact, the rising cost of doing business in terms of high utility rates, wages and taxes has put the manufacturing sector upside down in last seven years. This is the only area where government has nothing to celebrate unlike the case of Foreign Direct Investment, Foreign Exchange Reserves.
http://www.dailytimes.com.pk/default.asp?page=2007\06\07\story_7-6-2007_pg5_1
It is interesting to note that both the Prime Minister and his advisor on finance, Dr Salman Shah, have almost closed their doors on representatives of leading manufacturing sectors like textile and industry. Intensity of the situation can be judged from the fact that All Pakistan Textile Mills Association (APTMA) has approached President Musharraf through Ch Shujaat Hussain with a request to intervene in the situation and ask the Prime Minister to listen to their budget demands.
Similarly, Advisor to the Prime Minister on Finance Dr Salman Shah is also avoiding the sugar industry despite rescheduling his meeting with representatives of the Pakistan Sugar Mills Association (PSMA) two times in the last few weeks. As a matter of fact, both the Prime Minister and his advisor on finance have been harsh over the âinefficiencyâ of the textile sector and industry sources point out that both of them feel no harm if a few hundred units are closed across the country.
(now these bastards will learn to stand on there own feet.no more government hand outs.this kind of businessman don't create any jobs but cost the taxpayers money and are always crying.good riddance) The Rs 29 billion rescue package for the textile industry, announced in last budget had annoyed few segments of the industry, particularly the spinning and weaving. The spinners, as a matter of fact, got irritated over the situation and they have parted their ways with APTMA in Lahore and formed a separate group called All Pakistan Textile Association (APTA). The APTA bigwigs believe that as many as 200 industrial units would close down anytime after budget if the government does not announce any relief package. A few of them have asked for an exit strategy, urging the government to give them clean chit regarding their liabilities and they would shut down their units immediately.
The sugar industry too is not happy with the government. According to the PSMA people, the government offered a subsidy of Rs 18 billion in terms of import of sugar from outside Pakistan. Now, they say, the commercial importers are planning to import sugar from India when the country already has surplus sugar. The industry gurus are actively pursuing the Prime Ministerâs Advisor, as the Prime Minister himself is not ready to talk to them, for increase in import duty on sugar from existing 15 percent to 30 percent. However, no major breakthrough is expected ahead of budget.
The cement industry is also not happy with the government for its actions to control cement prices. Similarly, the cement industry is also demanding removal of remaining Central Excise Duty in the budget, which again looks like a far-fetched idea.
The value-added sector (knitted and woven garments) is crying for extension in 6 percent R&D Fund for another year, which is likely to be suspended by June 10 but the government is not ready to extend any commitments on this front. (with this kinds of buisness man no wonder our tax collection is no where near GDP)
As a matter of fact, the rising cost of doing business in terms of high utility rates, wages and taxes has put the manufacturing sector upside down in last seven years. This is the only area where government has nothing to celebrate unlike the case of Foreign Direct Investment, Foreign Exchange Reserves.
http://www.dailytimes.com.pk/default.asp?page=2007\06\07\story_7-6-2007_pg5_1
