FB 2020-21 becomes more crucial: Irfan Iqbal Sheikh

FB 2020-21 becomes more crucial: Irfan Iqbal Sheikh

LAHORE,(APP):Federal Budget for the year 2020-21 has become more important due to COVID-19 scenario therefore the government should consider pros and cons before announcing and implementing the policies for the next financial year.

These views were expressed by Lahore Chamber of Commerce and Industry (LCCI) President Irfan Iqbal Sheikh while talking to a group of businessmen here at LCCI, on Friday.

LCCI President Irfan Iqbal Sheikh said that Pakistan’s economy was going through a challenging phase due to the outbreak of COVID-19 pandemic. He said that the most impacted section of the society was the businesses, adding that the manufacturers, traders, retailers, importers/exporters and other segments of business community were facing financial losses due to current emergency situation. "These extra-ordinary circumstances require extra-ordinary policy decisions", he added.

Irfan Iqbal Sheikh urged that in order to improve the cash flow of businesses and inject more liquidity in the economy in this time, the interest payments of the businesses should be deferred for a period of six months.

The LCCI President also urged to grant exemption from the payment of Sales Tax on imported plant, machinery, equipment and components for Balancing, Modernization and Replacement (BMR) of all existing industrial units including SMEs.

He said that for increasing the investment in this lockdown period, the source of income should not be asked on any kind of investment in any sector of the economy for the next 2 years.

He also urged the government to take steps to reduce the interest rate to 5% in line with the regional economies since the high  policy rate had made borrowing expensive for private sector.