Caretaker Minister for Finance, Dr Shamshad Akhtar, expressed confidence that the interim government’s recent measures would contribute to stabilising the country’s economy. In a meeting on Friday, she discussed key initiatives with the Pakistan Business Council (PBC), a business advocacy body supported by over 100 leading local and multinational companies operating in Pakistan.
“The PBC was reassured that the measures taken by the interim government will stabilise the economy,” she said. The PBC applauded the interim government’s resolute actions to combat smuggling, bridge the gap between interbank and open market exchange rates, and demonstrate determination in energy and fuel pricing to uphold the IMF Stand-By Agreement.
However, the council urged the finance minister to ensure that the forthcoming IMF programme focuses more on reform, particularly in broadening the tax base and addressing fundamental issues in the energy sector.
The meeting was attended by the Chairman of the FBR, Malik Amjad Zubair, and his team, who engaged with the PBC regarding concerns over the disproportionate tax burden on the formal sector and high taxation of salaried employees.
Akhtar assured the PBC that a focused discussion would be organised with the FBR to address these concerns. She also disclosed plans to establish an independent Tax Policy Unit, separate from the FBR, and seek input from the Fiscal Affairs Department of the IMF regarding issues raised by the PBC.
The PBC further urged the finance minister to support competitive pricing of power for the industrial sector. They emphasised that such a move would foster job creation, increase tax revenue, and absorb surplus generation capacity, particularly during the winter months.
To achieve this, the PBC advised expediting south-to-north transmission projects for the efficient dispatch of low-cost power, restructuring IPP debt, and converting imported coal projects to utilise more cost-effective local Thar coal. Akhtar affirmed the government’s objective of reducing tariffs in response to these recommendations.
Published in The Express Tribune, September 23rd, 2023.
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