ISLAMABAD - The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Tuesday said Prime Minister Imran Khan's first address to the nation after being elected the country's new premier has won hearts and minds of the nation.

The speech has energised and motivated the entire business community of the country which will trigger economic activities and investment, it said.

In a joint statement issued here, President FPCCI Ghazanfar Bilour, VP FPCCI Karim Aziz Malik, Chairman Coordination Malik Sohail, Atif Ikram Sheikh and Jaweed Iqbal said that the new premier promised wide-ranging reforms, safeguard Pakistan's resources and redistribute them from the rich to the disadvantaged which is laudable.

The business leaders said that the PM Khan has promised that instead of trying to rebuild the economy via external loans, his government will try and fulfil its needs from within as no country can succeed by taking on debt.

They offered unconditional support to the agenda of the new government which include measures to cut down on expenses, tax reforms instead of loans, eradication of poverty, motivating overseas Pakistanis, rooting out corruption, revamping the judiciary, applying the KP police model in Punjab, educational, healthcare and civil service reforms, and building dams.

They also lauded the decision of PM Khan regarding devolution of power and plan to provide jobs to youth, a new housing project and a boost to the industrial sector.

Environmental issues, compassion for the underprivileged and following Madina’s model to rid Pakistan of its chronic problems were dubbed as highly laudable vows.

While lauding new finance minister Asad Umar and other members of Khan’s dedicated team, VP FPCCI Karim Aziz Malik said retail sector should be taxed, expats should be encouraged to send money through banking channels by offering relaxations, state-run corporations should be sold, FBR and other institutions should be monitored, and diplomats should be given export targets. 

He said that the government should cut indirect taxes, strengthen institutions, reduce trade deficit with China and bring back the stolen funds as soon as possible which will discourage corruption in future.

Meanwhile, former chairman of Standing Committee on Horticulture Exports of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Ahmad Jawad called upon the new government to offer concrete incentives to the exporters without any further delay so that country's exports could increase and on competitive price.

In a press statement, he suggested the government to offer incentives to exporters and in response, the government should compel the exporters that whatever they produced they should export to the world and barred from domestic market.

Similarly, Pakistani exporters should refrain themselves to produce different items. They should produce those items about which they have proper knowledge and infrastructure so that quality product may be exported to the buyer.

In Pakistan, he said structural reforms face two challenges: policymakers’ lukewarm commitments and resistance from vested interests.

The new government should initiate work on structural reforms as soon as it assumes power. These should focus on increasing the share of value-added products such as pharmaceutical, information technology-based and engineering ones in the export mix.  Currently, the country lacks product and market diversification. As a result, Pakistan accesses low-end markets and fetches low prices.

The bigger challenge for the new government will be to attract investments in export-oriented industries. Currently, domestic investment is concentrated in real estate, the stock market and power generation, he added.

Officials in the commerce ministry believe that the new government will have to devise a comprehensive plan which would include a short-term policy for consolidating gains, a mid-term strategy to improve competitiveness and a long-term plan for launching structural reforms.

It was also observed that Pakistan’s export basket is heavily reliant on textiles which is not good for Pakistan. In 2017-18, the share of textiles was 58.3pc, followed by 20.7pc of food commodities. Other factors that have slowed the growth of exports include a lack of funds for research and development, low labour productivity, rent-seeking and inconsistent economic policies, he added.

Jawad urged the Advisor on Commerce and Textile and the Prime Minister Imran Khan to promote non-traditional products for the export market such as horticulture sector and make a viable Pakistan Horticulture Development and Export Company (PHDEC).

Currently PHDEC is rushing with Acting charge which is joke for Horticulture exporters. He demands that corporate back ground person with due knowledge of farming may be appointed on this organisation so that non traditional items may flourish more for the export markets, he added.