Pak businesses in UAE lament no concession for overseas Pakistanis

PAKISTAN’S BUSINESS COMMUNITY in the UAE appreciated the 2018-19 budget announced last week, terming it as people- and business-friendly, but were surprised that there were no incentives for the overseas Pakistanis who remit billions of dollars annually to the country. The business community also urged the upcoming government to be elected in the July elections not to revise it as it affects foreign investor sentiments, as well as foreign direct investment into the country.

Mahmood Shaikhani, vice-president of the Pakistan Business Council, said the reduction in taxes on a number of items as well as a cut in customs duty on electric cars are positive initiatives announced in the budget.

“It is a friendly budget for the common man. Customs duty has been reduced on a number of products plus taxes have been cut on items used by the common man. More importantly, the next government, which will be elected after July 2018 elections, should maintain the momentum of this growth-friendly budget by not coming up with a mini-budget [in which most of the incentives are reversed],” said Shaikhani, who is also managing director of Dubai-based Shaikhani Group.

However, he pointed out that despite repeated promises, no incentives were announced for overseas Pakistanis in the budget.

Iskander Sultan Khwaja, former president of the Pakistan Business Council, said it is a well-balanced budget with a GDP growth rate of 5.8 per cent, a 13-year high, and tax revenues have been doubled.

“In the budget, the focus is given the to education sector to enroll 100 per cent of children, as well as a 10 per cent increase in public sector salaries and a hike in minimum pension from Rs6,000 to Rs10,000,” Khwaja said, adding that most of the industries got tax either exemptions or reductions, which have been rarely seen earlier. “So I would term it a pro-business budget.” “For overseas Pakistanis, it is disappointing that no major relief has been given to them because there are 9 million Pakistanis living abroad,” said Khawaja, who has been based in the UAE for 35 years.

Dr Hadi Shahid, founding member of the Pakistan Business Council in Abu Dhabi, also termed it a good budget for the development of the country and the stock market.

“A lot of concessions has been given to small-income earners with a threshold of Rs2.5 million. Broadly, the tax base in the country will increase as every ID card holder will have to submit his or her returns every year. Though overseas Pakistanis have been asked not to submit, but eventually they will have to do it when they are buying property in Pakistan. It is a good budget for Pakistan and I hope it will be implemented in letter and spirit,” he added.

Dr Shahid also pointed out that there were no incentives for overseas Pakistanis. — waheedabbas@khaleejtimes.com