‘Desta­bilised int’l en­ergy mar­ket, a threat to Pak­istan’

The Pak Banker - - NATIONAL -

Pak­istan Busi­ness­men and In­tel­lec­tu­als Fo­rum (PBIF) Pres­i­dent Mian Zahid Hus­sain on Tues­day said volatile in­ter­na­tional oil mar­ket has emerged as a great threat for oil im­port­ing coun­tries which can face se­ri­ous con­se­quences.

Oil can­not re­cover be­fore 2017 there­fore oil pro­duc­ing coun­tries should reengi­neer tax sys­tem, im­pose new taxes and abol­ish sub­si­dies to im­prove their fall­ing GDP and save the world from an­other cri­sis, he said.

Mian Zahid Hus­sain who is also Pres­i­dent AKIA, First Vice Chair­man of the Busi­ness­men Panel of FPCCI and for­mer Pro­vin­cial Min­is­ter said that oil pro­duc­ing na­tions has seen seventy per­cent fall in their in­comes while Arab and North African coun­tries have suf­fered a loss of 340 bil­lion dol­lars last year which amounts to twenty per­cent of their GDP.

Talk­ing to Chair­man of Pak­istan Over­seas Em­ploy­ment Pro­mot­ers As­so­ci­a­tion Ch. Muham­mad Afzal and oth­ers, he said that time has come for the oil ex­porters to re­con­sider lay­offs and in­tro­duce value-added tax, cor­po­rate tax, ex­cise duty, prop­erty tax and tax on all the in­comes ex­cept for re­mit­tances.

He said that de­vel­op­ing coun­tries in­clud­ing Pak­istan are heav­ily de­pen­dent on re­mit­tances there­fore down­turn in Arab na­tions is not af­ford­able to them, Saudi Ara­bia which is fac­ing a loss of Rs 100 bil­lion dol­lars can de­fault by 2020, ac­cord­ing to IMF pro­jec­tions.

The vet­eran busi­ness leader said that GCC coun­tries have lost 500 bil­lion dol­lars in one year which should act as a wake-up call to push oil im­port­ing coun­tries to brace for the sit­u­a­tion, re­duce ex­pen­di­tures and deficit and im­prove in­come through tax re­forms and ex­ports.

Govern­ment should cut non-de­vel­op­men­tal ex­pen­di­ture, abol­ish sub­si­dies, down­size staterun or­gan­i­sa­tions and take other nec­es­sary steps. Ex­port sec­tor should be equipped with lat­est trends and out­dated el­e­ments lest the sit­u­a­tion be­come out of con­trol and re­sult in bank­ruptcy of the coun­try, he warned.

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