ISLAMABAD - Finance Minister Ishaq Dar on Monday dismissed rumours about demonetisation of Rs5000 currency note and withdrawal of Rs40,000 prize bond. He said that such rumours were being spread by the vested interest for ulterior motives. He further said that even no such proposal is under consideration of the government.

APP adds: World Bank Country Director Patchamuthu Illangovan and Finance Minister Senator Mohammad Ishaq Dar have agreed to speed up reforms process that will bring efficiency and transparency in the system.

In a meeting held here, they also discussed various ongoing reform initiatives being undertaken by the government. The meeting was attended by Secretary Finance, Chairman Securities and Exchange Commission of Pakistan and other senior officials of Ministry of Finance and the World Bank.

Dar reviewed the country development portfolio of the World Bank in Pakistan and progress on implementation of various projects being executed with World Bank's assistance. The finance minister expressed satisfaction over the pace of project implementation and appreciated the cooperation offered by the World Bank team to Pakistan in its various development projects.

Ishaq Dar apprised the World Bank team about the government's reform agenda which was especially focused on reforms in the financial, insurance and banking sectors.

The Country Director World Bank appreciated the performance of the current government in introducing reforms and discussed with the finance minister the proposed financial assistance package to be made available to Pakistan under Finance for Growth Development Policy Credit.

Meanwhile, Ishaq Dar Monday said the Federal Board of Revenue (FBR) had cleared sales tax refund claims of Rs 21 billion which would be electronically transferred in the accounts of tax payers within next 24 hours.

Addressing the inaugural ceremony of 'direct electronic credit of sales tax refund system', he said total Rs 25 billion refund claims were pending from June 2015 to June 30, 2016. Claims for Rs 21 billion had been processed while those of about Rs 3.5 billion would be transferred in the accounts of respective tax payers within a week by addressing all the issues and modalities, he added.

The direct electronic credit refund method has been developed by the FBR in collaboration of the State Bank of Pakistan.

The minister said the new refund payment system would bring transparency by minimizing direct human interactions. It would also save the time of tax payers, besides strengthening the FBR by improving its governance structure, he added.

He said Rs 22 billion refund claims were also cleared in August as the prime minister had announced to clear all refunds by October.

The minister said in 2013, the government had inherited pending refunds of Rs 211 billion and it had committed to clear all the refund claims within minimum time, besides zero rating for five export sectors.

The government, he said, was taking several steps for institutional reforms in order to improve the governance system and bring transparency and sustainabaility.

He said the government had introduced Companies Ordinance 2016, which had replaced the 32-year old law and empower the SECP to find out offshore tax havens.

The minister said the government would address all the issues of real estate sector and they would be facilitated by bridging the gap between documented and undocumented economies.

Speaking on the occasion, FBR Chairman Nisar Muhammad Khan said as per the prime minister's announcement, sales tax refund claims of Rs 22 billion were paid earlier. Now Rs 21 billion was being refunded through the newly devised mechanism for which the FBR team deserved appreciation. Special Assistant to the Prime Minister on Revenue Haroon Akhtar Khan said the government had fulfilled its promise of paying tax refund claims and zero rating.