FM highlights customs’ role in economic growth

Stresses significant impact of smuggling, money laundering, and tax evasion on country’s economy

ISLAMABAD:

Caretaker Federal Minister of Finance and Revenue, Shamshad Akhtar, highlighted the ongoing efforts to develop a strategy for sustaining long-term economic growth and development. Addressing an event commemorating “International Customs Day” at the Old Customs House, Akhtar stressed the significant impact of smuggling, money laundering, and tax evasion on the country’s economy.

During the International Customs Day event, Akhtar underscored the crucial role played by Pakistan Customs in promoting cross-border trade and its significance in the national economy. She expressed a preference for a streamlined “one-window facility” within Pakistan Customs. The finance minister endorsed the theme of Customs Day 2024 and mentioned initiatives such as the customs tariff review programme and a reduction in new Statutory Regulatory Orders (SROs), which have contributed to lowering duties.

She outlined the commitment to a modern regulatory framework, particularly focusing on making the Torkham and Chaman borders pivotal points for customs activities, offering substantial income opportunities. Acknowledging the ongoing efforts to expand the nation’s economy, Akhtar stressed the need to increase the tax rate in relation to the GDP. Currently, the country’s tax rate stands between 8% and 9% of GDP, a figure she stressed should be higher.

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The finance minister shared that recommendations for reducing duties and SROs will be presented as part of the reform process, acknowledging the challenges in customs reform for cross-border trade. Akhtar revealed that the reform consultation process for the Federal Board of Revenue had been ongoing for the past five months, with active involvement from the FBR chairman and proposed schemes for reforms.

While expressing confidence in meeting the revenue target of Rs9.4 trillion for the current fiscal year, Akhtar highlighted the importance of a continuous series of measures to achieve and increase revenue. She highlighted the necessity of an awareness campaign to garner support for this goal, underscoring that increased revenue is vital for the economic and social development of the nation.

The International Customs Day celebration at the Customs House in Islamabad included a ceremony attended by Shahid Ashraf Tarar, the supervising Federal Minister for Communications and Maritime Affairs. Tarar commended the exceptional performance of customs officials, setting a positive precedent for their dedication and integrity. Certificates and medals were presented to customs officials who excelled in their duties, highlighting their commitment to the nation.

Published in The Express Tribune, January 27^th, 2024.

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