LAHORE - Lahore Chamber of Commerce and Industry’s Standing Committee on Economic affairs chairman Kashif Anwar has advocated the need for broadening the country’s tax base instead of squeezing existing taxpayers with a view to improve tax-to-GDP ratio.

He said that only political will and drastic steps can revive the economy, which should have grown significantly and constantly for visible impact. Besides governance challenges, adverse security perception, political instability and the foreign trade offices role is also vital for the continuity of enhancement in foreign investment, he concluded.

Kashif Anwar said that despite some increase in foreign investment, the FDI inflows were not sufficient to fully offset the widening in the current account gap. As a result, the country’s liquid foreign exchange reserves declined over $1.7 billion during FY17. According to SBP during the period, portfolio investment witnessed downward trend and declined by 66 percent.

He said that deep reforms and improvements in governance must be carried out to unleash the country's growth potential. Without substantial improvements in governance and a reduction in corruption, decent economic growth is hard to anticipate.

He stressed the need for improving governance and eliminating corruption with a view to improve stable economic growth. He said that investment in agricultural infrastructure and R&D also needs to be carried out urgently to improve productivity in agriculture and industry.

He said the government must provide more incentives and special packages, with reduced taxes and preferential treatment to exporters. He said the most critical challenge is to overcome the energy crisis to ensure sufficient and affordable supply of electricity that is essential to maximise industrial productivity, adding that there is a need to further strengthen the law and order situation and eliminate terrorism to optimise economic progress.

LCC former vice president said that Pakistan has a great opportunity to increase its share in global trade through the fresh economic activities generated by the China-Pakistan Economic Corridor (CPEC), regional trade arrangements and Strategic Trade Policy Framework. At this critical juncture, the government must take bold steps to reduce the cost of doing business, ease market-access, strengthen its institutions and improve competitiveness.