Stepping up: Finance minister warns against speculative drives

Informs businessmen on tax widening initiatives and economic performance so far.

LAHORE:

Federal Finance Minister Ishaq Dar, on Saturday, warned speculators to refrain from their vile practice in the forex market or be ready to face action for causing huge financial losses to economy.

The federal minister was speaking at the Lahore Chamber of Commerce and Industry (LCCI). The LCCI Acting President Mina Tariq Misbah had presided over the meeting which continued for over three hours

A few people have taken the whole economy of the country hostage, but they would not be allowed to play at the cost of financial loss to the country, said the minister.

The minister assured businessmen that there would be no witch hunt by the Federal Bureau of Revenue to broaden the tax net. He said 165A was meant for tax evaders only. “Name a single tax registered person who has been given notice under 165A,” he asked.

He said that increasing the tax-to-GDP ratio to 15% of the GDP would be the first goal of the government which can be achieved only by registering new taxpayers. He said that the government hoped to fully revive growth and the economy in the next five years.

Despite adverse conditions, the economy showed robust growth in the first quarter of this fiscal, said the finance minister, adding that the foreign direct investment had increased by 83%, portfolio investment jumped by 101% and the large scale manufacturing had grown by 8.5% in the first quarter. “The negative trends in growth have been stopped and we are now moving on,” he added.

Ishaq Dar said that international rating agencies have acknowledged Pakistan’s performance and have upgraded its rating. He said the donors have offered lucrative loans to appreciate the efforts of the new government.

The minister spoke at length on all important issues faced by the economy and the measures being taken to overcome the challenges. He said that a three-year well-tailored economic revival plan had already been put into the motion that would yield positive results.

He told the meeting that newly imposed taxes had been the result of caretaker government’s commitment with International Monetary Fund (IMF). He added that the government is focused on narrowing down the foreign account and budget deficit.

On the issue of energy shortage, the minister said that the government was striving to ensure supply of cheaper energy to masses and for this purpose, it had launched medium- and short-term plans. He said that work on Neelum-Jehlum, Diamir-Basha and Dasu dams were well on their way. Once completed, they would help end power shortage in next three years, he assured.

He said that the government was also working on Civil Nuclear Technology and wind energy projects. He said that the government was determined to add 8,500 megawatts of electricity into the national grid by year 2016.

The finance minister announced setting up two committees comprising former LCCI president Mian Muhammad Ashraf, Sheikh Muhammad Asif, Mian Anjum Nisar, Iftikhar Ali Malik and FBR Chairman Tariq Bajwa to look into the issues of steel industry, under-invoicing, smuggling and sales tax refunds. He said the decisions taken by the committee would immediately be implemented in letter and spirit.

Speaking on the occasion, the LCCI Acting President Mian Tariq Misbah, said that the business community fully understood the economic conditions inherited by the present government.

Published in The Express Tribune, November 17^th, 2013.

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