KARACHI (APP) - Speakers at an economic summit have called for taxing agriculture, real estate, services and retail sectors and foreign exchange business to enhance tax-to GDP ratio from 9 to 15 percent and end countrys economic woes. Former Finance Minister and noted banker Shaukat Tareen said that corporate sector was contributing 93 percent of the total tax while other sectors including retail businesses were paying only 7 percent taxes. Speaking at an American Business Councils Economic Summit 2011 - Unlocking True Potential, at a local hotel here Saturday, he while underlying the need for creating a political consensus for imposing income tax on all incomes in the country across the board. Tareen said that there were huge loopholes in tax collection system, which was encouraging tax evasion. Similarly, we need to transform black economy into regulated economy through incentives, he added. He said there should no sacred cows in the countrys taxation system and every income must be taxed. He said that prices of agriculture produce were linked to international prices to encourage this sector to pay taxes, but it is still not paying taxes. He pointed out that Pakistans entire retail sector was paying only Rs75 million to national exchequer while Canteen Stores Department was paying Rs50 million, making a total of Rs125 million. Tareen said that private sector was the pillar for future growth and it is performing well. Leading tax consultant partner of A F Furgosan & Co, Shabbar Zaidi said that country needs to focus on four sectors including agriculture, real estates, retail and services sectors for broadening tax base. He said the government had offered amnesty scheme to tax evaders for whitening their money, but to no avail. Businessmen have two options, either contribute to national exchequer or pay bhatta to mafias. It has been experienced that some time bhatta is more than the tax liability, he noted. Zaidi pointed out that the contribution of large textile sector to national exchequer is only 3 percent while telecommunication, oil and gas and banks and financial institutions pay more than 90 percent of the total taxes. He said it is very easy in Pakistan to bring in and send out foreign exchange, whereas it is very difficult to take out dollars from India due to stiff regulations. He said that Turkey has enhanced its tax to GDP ratio from 13 percent to 33 percent during the tenure of Prime Minister Tayyip Erdogan while Brazil has expanded its ratio to 37% in last 15 years. Zaidi said that out of total tax collection, Rs500 billion go to defence, Rs900 billion towards debt payment, Rs120billion on war against terror, Rs350 billion towards public sector enterprises and Rs200 billion in subsidies payments. Chairman Board of Investment (BoI) Saleem H Mandviwala said that despite the global economic slump Pakistan has received over $ 18 billion in foreign direct investment (FDI) since 2006. This signals investor confidence in this region and points to a trajectory of future investments as the global crisis abates. He said that two Korean giants, Lotte and POSCO, with a combined turnover of $100 billion have entered the Pakistan market after two years of efforts from BoI. POSCO has recently entered into joint venture with Tuwairqi Steel and would invest $200 million to expand capacity of Tuwairqi Steel. I feel their investment in coming years will be substantial. Yamaha is at advance stage to invest in Pakistan and plans to invest $ 150 million, which will create about 45,000 jobs. Foton Group is working on a project to bring 2000 CNG buses in different phases in Sindh province. In Pakistan today, 100% of the textile and telecommunications sector, over 77% of the commercial banking sector, and a significant part of the cement, sugar, automobile and fertilizer sector are in the private sector. Pakistan has improved five ranks on the Global Competitiveness Index (GCI) this year, securing the rank of 118 out of 142 economies. Although this rank is not laudable, still we feel that we are in the right direction and we must work hard to improve our standards across the board. Quoting World Banks Ease of Doing Business Report for 2011, Mandviwala said Pakistan ranks higher than BRIC countries in most categories. A closer look will show that in Ease of Doing Business it ranks better thana; in Enforcing Contracts it stands better than China, Russia and Brazil and in Registering Property it ranks better than all 4 countries. He quoted the success stories of Swiss-owned Nestle, Japanese Toyota Corollas, Engro Corporation, Unilever, etc for making phenomenal growth. Managing director of Karachi Stock Exchange, Nadeem Naqvi suggested for promoting clustering, marketing strategies and corporatization in the country to tap the existing potential. He called upon corporate sector to set up high skill training facilities in Pakistan and to offer scholarships to outstanding students for higher education. This will help in producing skilled workforce for local industry as well as for services exports. He underlined the need for investment led growth rather than consumer led growth. Earlier, ABC president Humayun Akhtar in his welcome address highlighted the importance of the summit while vice president Saad Amanullah Khan gave an overview of the event.