Who Owns Pakistan - Yimg

This decision is based on personal consideration and will adversely affect the
local industry".
While condemning each other over their treatment of the Indus Toyota Project,
the leaders of both PPP and PML were shy to fully talk about reasons for which
one was allegedly supporting and other was opposing a project of national
importance, launched by one of largest industrial groups in the country. A former
cabinet minister speaking on condition of anonymity traced the origin of the
dispute to a bid by the house of Habib to offer a donation of Rs 10 million to PML
govt of Mohammad Khan Junejo. The offer was refused. The minister reported
the matter to President Zia ul Haq leading to an official inquiry. Obviously offer of
a similar donation was made to the other party which was accepted. Even
thieves have a code of honour and so have out polliticians.
The Politics of Tax Holidays
A week before Prime Minister Benazir Bhutto was to visit Japan in January 1996,
the Ministry of Finance withdrew the fiscal package for Special Industrial Zones
(SIZ) that was announced by the PPP govt with great fanfare in January 1994,
within weeks of coming into power.
Pakistan had worked hectically for the coveted visit to Japan where Prime
Minister was to inaugurate an investors conferences arranged by the Board of
Investment. The withdrawal of the package for SIZ was a major embarrassment
for the visit, particularly because the publicity matter relating to investment
opportunities in Pakistan printed in Japanese language had already been
dispatched and contained references to SIZ, as jewel of the crown of the govt
economic policies. It was V A Jaffery, the Economic Advisor to Prime Minister
who had accepted the IMF demand for withdrawal of the fiscal package for SIZ
but Prime Minister House came to know about the withdrawal of the package
only when it wanted to issue a contradiction to reports in the newspapers.
Mohib ullah Shah, Secretary, Board of Investment told reporters at several press
conferences that he was holding protracted negotiations with IMF delegations,
seeking restoration of the concessions. A question that remained unanswered at
his press conferences was why IMF had demanded the abolition of the SIZ
scheme. At a loss to answer the question, he contented that " SIZ's will generate
economic development and employment at the cost of tax collection". He was
unaware of the fact that Pakistani entrepreneurs have enjoyed such exemptions
and holidays since 1950's. A chronology of tax-exemptions granted by
successive govts to encourage industrial investment will prove it.
The 1959 budget announced a two years tax holiday for industries set up
anywhere in Pakistan which was extended to four, six and eight years i.e upto
1967 but the exemption for Karachi was allowed to expire after four years.
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