Shehbaz approving FBR’s Home Grown Transformation Plan.  Directs third party audit of all FBR projectsn Stern action proposed against those not paying full tax.  Chinese firm signs MoU to set up world class textile parks in Pakistan.

ISLAMABAD    -  Emphasizing for strengthening the tax system in the country, Prime Minister Shehbaz Sharif has said the digitisation of the Federal Board of Revenue (FBR) and its improved enforcement mechanism were the need of the hour as it would bring about economic reforms in the country.

The PM said this while approving the FBR’s Home Grown Transformation Plan regarding improved tax collection management during a meeting a meeting held here to review the matters related to the FBR on Friday.

Earlier, this plan was prepared by the FBR on the instructions of the Prime Minister in collaboration with other economic and technological experts of the country after a detailed analysis of the tax collection of the last 25 years.

The new approved plan will enable more tax to be collected in a better manner without hindering the journey of economic development and will provide more convenience to the people paying full tax.

The meeting was given a detailed briefing on the FBR’s transformation plan. It was informed that the plan includes a comprehensive strategy for the effective use of information technology, incentivizing officers and staff who demonstrate integrity and performance in improving tax collection and enhancing the enforcement of tax laws.

According to the proposals, strict measures can be taken against those who do not pay full tax on time and are involved in fraud in order to prevent tax evasion in the society.

It was informed that these measures will be implemented after extensive consultation with good taxpayers.

Under the transformation plan, auditing capacity of FBR will be enhanced.

Speaking on the occasion, the Prime Minister was appreciative of FBR’s transformation plan and directed further consultation on it with all relevant stakeholders. He said good taxpayers should be invited and consulted on the transformation plan.

Prime Minister Shehbaz directed the formulation of a comprehensive strategy to further enhance the effectiveness of the FBR’s enforcement system, describing it a pressing need of the time.

He noted that FBR is the backbone of the country’s economy and its digitization is an important milestone in government’s economic reforms.

Shehbaz said improvement in revenues will enhance the provision of services to the public and lead to betterment in the social sector.

The Prime Minister also directed third party audit of all FBR projects.

Shehbaz Sharif said promotion of the private sector is among the government’s priorities, emphasizing an active and prosperous private sector is very important for the country’s economy.

The Prime Minister also directed to accelerate efforts against smuggling. It was also decided to set up new check posts to prevent smuggling.

Meanwhile, Prime Minister Shehbaz Sharif witnessed the signing of a Memorandum of Understanding between the Board of Investment and RUYI Shandong Group.

Earlier, the PM had a meeting with the nine-member delegation of the RUYI group led by its Chairman Qui Yafu.

According to this MoU, RUYI Group of China will establish Textile Parks of international standard in across Pakistan which would give boost to Pakistani textile sector and exports.

The RUYI Group briefed the Prime Minister that it will establish Textile Parks of international standard in Sindh and Punjab and around 100 large textile industries from China will be invited for investment in these parks.

It was told that the objective of these textile parks is to enhance Pakistan’s textile exports and to make the country textile and garments hub of the world.

It was further briefed that solar energy will be used in these textile parks and they will operate on zero carbon and advanced automated technology.

In the first phase, these parks are expected to generate exports worth two billion dollars, while in the second phase, exports are likely to reach five billion dollars. These textile parks will provide employment opportunities to around half million locals.

The foundation stone of these textile parks will be laid by the end of this year, and they will be completed within three years.

The RUYI Group will also set up wholesale commodity centers in Karachi and Lahore.

During the meeting, it was decided to establish working groups in Islamabad and Beijing to advance matters between Pakistan and the RUYI Group.

The Prime Minister, on the occasion, directed the formation of a special committee headed by Deputy Prime Minister and Foreign Minister Ishaq Dar in this regard.

The committee will comprise federal ministers for commerce, investment and privatization, industry and production, the foreign secretary, a representative of the Special Investment Facilitation Council, and Zafaruddin Mahmood.

Speaking on the occasion, the Prime Minister said China is a friend of Pakistan that has stood by Pakistan in every difficult time. He said economic relations between Pakistan and China are getting stronger with each passing day.

Shehbaz Sharif further said that RUYI Group was the first investor in the Sahiwal Coal Power Plant under the China-Pakistan Economic Corridor. He appreciated the RUYI Group’s deep interest in investing in Pakistan’s textile sector.

In his remarks, Chairman RUYI Group Qui Yafu said they came to Pakistan not as investors, but as friends of Pakistan.

He mentioned the rapid development works known as ‘Shehbaz Speed’ during the Prime Minister’s tenure as Chief Minister of Punjab and expressed hope that this time too, the same speed will be seen in the completion of development projects.