ISLAMABAD-National Assembly Standing Committee on Finance and Revenue has recommended a comprehensive super tax applicable to all entities, which would be based on the limit of profits, as proposed by the Federal Board of Revenue (FBR).
The government is optimistic about the forthcoming achievement of a staff-level agreement with the International Monetary Fund (IMF), which is anticipated to facilitate the inflow of funds from international financial institutions (IFIs) by removing any obstacles that may impede the process. The Committee demanded a progress report from the concerned authorities on the measures taken to ensure the investigation of banks involved in exchange rate manipulation. The meeting of the Standing Committee on Finance and Revenue was held in the Committee Room of FBR House, Islamabad under the chairmanship of Qaiser Ahmed Sheikh, MNA. Minister of State for Finance and Revenue Aysha Ghaus Pasha provided assurance to the Committee that the government has devised a plan aimed at implementing macroeconomic and structural policies, with a view to minimizing economic imbalances, fostering long-lasting inclusive growth, and generating employment opportunities. She apprised the Committee on the delay in the 9th review by the IMF, which was a result of a mutual agreement between the organization and the government. Specifically, the estimates for expenditure concerning humanitarian assistance in relation to flood-related incidents for the current fiscal year, as well as those of priority rehabilitation expenditure, have remained pending since their expected due date in September, 2022. She also apprised the Committee to concentrate on assisting the Finance Division in adopting measures related to structural economic reforms, strategies for mitigating circular debt and recuperating losses related to the power sector, and devising sustainable economic policies aimed at benefiting the general populace of Pakistani society.
The Committee suggested that the Finance Division and the FBR should formulate policies designed to bolster domestic industries that rely on the importation of raw materials from international markets and to aid importers in clearing their commodities from Custom Authorities. In response to a proposal for amnesty schemes aimed at enhancing the inflow of dollars, the government declined the offer on the grounds that such a measure would cause Pakistan to once again enter into the blacklist of the Financial Action Task Force (FATF). During the course of discussion, the Secretary, Finance Division has responded to the concerns raised by the Committee during meeting by undertaking a range of measures to enhance the country’s economic situation. The Committee and the government concur that a range of measures is essential to counteract the ongoing economic crisis in Pakistan, including comprehensive economic policies, sustainable tax regimes, initiatives to reduce expenditure, the promotion of sustainable development, the introduction of export-oriented policies, the facilitation of private sector activities, and a gradual reduction of circular debt in the power sector.
During the meeting, the Chairman of the Federal Board of Revenue (FBR) expressed confidence that the agency is pursuing the correct course of action to collect the anticipated tax revenue of 7.47 trillion rupees for the present fiscal year. The Committee expressed its dissatisfaction with the delay in appointing heads for the National Bank of Pakistan (NBP) and Zarai Tarqiati Bank Limited (ZTBL), which has remained unresolved for nearly a year. The Committee recommends to approve Public Sector Development Program (PSDP) related to Revenue Division, with exception, for the financial year 2023-24 to be included in the Federal Budget for the next Financial Year. However, the Committee deferred the discussion/scrutiny of PSDP projects related to Finance Division till its next meeting. Later, the Committee appointed a Sub-Committee under the convenership of Ch Muhammad Barjees Tahir, MNA with Salahuddin Ayubi, Engr. Sabir Hussain Kaim Khani, Ms Wajiha Qamar, MNAs as its members. The Committee will consider the government bills, titled, “The Securities and Futures Markets Bill, 2022”, “The Modaraba Companies and Modaraba (Floatation and Control) (Amendment) Bill, 2020” and “The Tax Laws (Amendment) Bill, 2021” (Ord. No. VI of 2021).