KARACHI: Badruddin Fakhri, Council Member of Institute of Cost and Management Accountants of Pakistan (ICMAP) has expressed amazement over the annual privatisation target of Rs20 billion set for 2005-06, whereas privatisation of PTCL only would generate Rs120 billion plus.
Addressing the post-budget session organised by ICMAP here on Wednesday night, he sarcastically remarked about budgeting of federal accounts and urged the need of projecting correct figures of federal receipts.
Fakhri said last year the privatisation target was missed by Rs10 billion.
Praising the budgetary measures, however, he suggested to policy-makers that like exporting industries, local industries saving billions of rupees of imports through indigenous production of raw materials must also be granted concession on the import of machinery and plants, which are not manufactured locally at “true zero-rated custom duty”.
He was of the view that through zero-rated import of machinery and plants, CBR would help minimise trade deficit of the country because these industries would manufacture items which are presently being imported at very high costs.
He was of the view that CBR should also take ministerial measures for the issuance of guidelines and required procedure by Securities and Exchange Commission of Pakistan (SECP) for the early implementation of “amalgamation” clauses of federal budget regarding trading and industrial companies of the country.
Badruddin Fakhri reminded that it was ICMAP, which took the lead in suggesting to policy-makers that like banks and NBFCs the companies of private scoter should be allowed to amalgamate so that closed down units, or companies could be revived.
He said the law regarding taxation of amalgamation has been issued but SECP must quickly issue its guidelines for the start of amalgamation keeping in view the requirements of company laws of the country.
He maintained that SECP guidelines would help in rehabilitation of the sick units of the country.
He further said that said that at the same time SECP should also issue guidelines for amalgamation of insurance companies because the same tax facility has been granted for insurance companies of the country.