LAHORE: Pakistan needs to shift from protectionist to an economy-centric approach for the sake of stability and recovery, says Prof Dr Hussain Mohi-udDin Q adri.

`Economic recovery is impossible without minimising no-go areas for local and foreign investment and without shedding the protectionist approach,` the deputy chairman of Minhaj University`s board of governors told a pre-budget seminar on Thursday.

He said that the international thinking and approach of open economic trade should be adopted so that local and foreign investors can confidently invest in the areas oftheir choice.

E conomists Dr Amanullah, Senior Vice-President of Lahore Chamber of Commerce and Industry Zafar Mehmood, Dr Muhammad Tayyab and Dr Khurram Shehzad also expressed their views at the seminar.

`Many areas closed to local and foreign investors.

The state needs to take bold decisions in view of the huge financial crisis facing the country. Otherwise, the crisis will deepen with each passing day,` Dr Qadriwarned.

DespiteinitiativesliketheTaxReformsCommission and Asset Declaration Scheme, challenges like a complex tax system, red tape, resistance to change because of widespread corruption, and infrastructure deficiencies are hindering substantial progress, he said. He added that external factors like IMF programmes have also influenced policy directions, often necessitating austerity measures and structural adjustments.

The economist suggested taking onboard stakeholders for effective changes in the tax structure, cutting the number of tax payments, a fair distribution of taxes across sectors, and bringing retail, real estate and services sectorsinto the taxnet.

He suggested a shift towards a direct taxation system, phasing out subsidies to nonproductive sectors,targetingsupportforthe have-nots,repealingthe minimum turnover tax and instead evaluating business profits directly, removing discretionary tax exemptions granted to ex-Fata/Pata regions, and curbing the discretionary power of tax men.

Dr Qadri also proposed elevating the GST exemption limit from Rs10 million to Rs30 million to incentivise smaller enterprises to formalise their operations.