PEW says budget will not improve investment climateJune 9, 2015
ISLAMABAD: Pakistan Economy Watch (PEW) on Wednesday said budget will not improve the investment climate in the country which will shrink the industrial base while promoting tax evasion and flight of capital.
Industrialists would prefer trading, real estate and construction sectors over industrial expansion while many would relocate or simple transfer funds abroad bringing rupee under pressure, it said.
Government has done nothing in the budget to encourage investment in in industrial sector or reverse the trend among the businessmen to prefer trading over industry, said Dr. Murtaza Mughal, President PEW in a statement.
He said that the new tax measures, GIDC and petrol price hike will contract growth and the package for Khyber Pakhtunkhwa will remain counterproductive because law and order situation would discourage investors.
He said that banks would continue to prefer forwarding loans to the government as discourage private sector in absence of any directions to them.
Government has claimed reduction in unemployment and provision of 2.5 million jobs is the new fiscal which is baseless, he said, adding that creation of new jobs require minimum of seven percent growth rate.