950805

Demand for special

industrial zone

in Islamabad

ISLAMABAD: Khalid Javaid, President, Islamabad Chamber of Commerce & Industry (ICCI) on Saturday urged the Federal Government to establish a special Industrial zone in Islamabad.

In a statement, he said that it would not only help in economic development in the country but also provide job opportunities to the people of the area. He said that the capital city was centrally located and fulfilled all preconditions for setting up the proposed industrial zone.

Law and order situation is satisfactory, skilled and semi-skilled labour is available. There is industrial peace and security environment is excellent. Moreover, Islamabad could serve as a gateway to the Central Asian states, he added.

Khalid Javaid also called upon the government to reduce interest rates on bank loans. The rates of interest on loans was low in those countries which made advancement in industry and commerce.

Citing an example of European countries he said rate of interest in those countries ranged from 4 to 8 percent. In Bangladesh, rate of interest on loans is 14 percent whereas in Pakistan it is about 20 percent, he added.

He called for reduction in income tax slab which is 25 percent in Bangladesh while in Pakistan it was much higher. He suggested that those already paying incometax should not be burdened with additional taxes. Rather the Central Board of Revenue should broaden the tax base and bring new tax payers in the tax net.

The ICCI chief said that the Government should curtail non-development expenditure drastically. The constitutional provisions of decentralisation of administration should be seriously considered and implemented. This will help in the curtailment of non-development expenditure in a big way, he added.

Khalid Javaid appealed to the government to grant exemption to the chambers of commerce and industry from taxes. He said "the income of the chambers accrues from membership fees, and almost all chambers are running their operations either in deficit or no-profit no-loss basis. The Chambers are not industry, making profit. They are established as service organisations to promote trade and industry all over Pakistan. He demanded that the chamber's income derived from fees, exhibitions, rentals and donations be exempted from income tax etc", he added.-APP