ISLAMABAD   -   The Asian Development Bank (ADB) would provide $6 billion to Pakistan in next three years, which has also included concessional loan.

Country Director ADB briefed the parliamentary committee about the bank’s projects in Pakistan and its role in the country’s socio-economic development here on Wednesday.

It was reported that ADB’s recent support for Pakistan included $802 million, $500 million for COVID-19 vaccines in 2020 and 2021, and $1.5 billion in commitments for recovery efforts from the 2022 floods. It was informed that the Bank would give $2 billion to Pakistan annually in next three years, which also included concessional rate.

A meeting of the Senate Standing Committee on Finance and Revenue was convened yesterday under the chairmanship of Senator Saleem Mandiwalla at the Parliament House. The committee unanimously approved, with amendments, the Government Bill titled “The Banking Companies (Amendment) Bill, 2024,” which was referred by the House on August 27, 2024.

The committee examined the legal basis for provinces of imposing taxes on exports. It was clarified that provinces have the constitutional authority to levy an Infrastructure Development Cess on the transportation of goods for imports and exports. However, to promote exports and facilitate the flow of foreign exchange, such duties and taxes are generally not imposed on exports.

The Khyber Pakhtunkhwa province, which shares a border with Afghanistan and has substantial export activities, may see a negative impact on exports due to a proposed 2% Infrastructure Development Cess. It was noted that Pakistan Customs is not currently collecting this cess; rather, banks are handling it on behalf of the provincial government.

It was decided that MOF ll constitute a committee to finalise a recommendation for the committee to resolve this issue

The committee also received a comprehensive briefing from the Karakoram Initiative on the concept of a “National Tax Authority.”

The meeting included the participation of Senators Farooq Hamid Naek, Sherry Rehman, Anusha Rahman Ahmad Khan, and Shazaib Durrani. Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, along with senior officials from related departments, also attended.