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Karachi, Caretaker Finance Minister, Dr Shamshad Akhtar, emphasized the importance of supporting the government’s push to attract foreign direct investment and the need to invest in export-based industries. This, she believes, would play a pivotal role in the nation’s development and aid in maintaining a robust balance of payments. The minister shared these views in a meeting with the Overseas Investors Chamber of Commerce and Industry (OICCI) members.
According to a news release by Overseas Investors Chamber of Commerce and Industry, during Dr. Akhtar’s visit to the organization, she was joined by the Chairman of the Federal Board of Revenue (FBR) Malik Amjed Zubair Tiwana, the custom and income tax commissioner, and the SECP Commissioner, Abdul Rehman Warraich.
The minister provided insights on the country’s recent economic performance. Early indicators from the initial months suggest that the economy is on the path to recovery. The agricultural sector, based on the latest crop output results, is looking hopeful, and the large-scale manufacturing sector is exhibiting positive growth, although it is still not operating at full potential. The FBR’s collections in the first quarter have met expectations. Dr. Akhtar also underlined the government’s commitment to introducing State-Owned Enterprise (SOE) reform policies and to further improve corporate governance practices.
Dr. Akhtar expressed gratitude to the OICCI members for their contributions towards bringing foreign investments into Pakistan. Stressing the government’s willingness to assist foreign investors, she outlined the main focus of Pakistan’s economic revival program: fostering a sustainable economic recovery steered by the private sector. Emphasizing the significance of collaborative effort, she stated, “The crisis like we are facing at present cannot be addressed solely by the government, private sector’s support is very critical.”
During the discussion, the OICCI strongly recommended the government broaden the tax base to bolster revenue generation. Notably, the chamber pointed out tax evasion in the tobacco sector, which exceeds Rs300bn. OICCI proposed the establishment of an independent private sector group of experts separate from the FBR’s jurisdiction. Many OICCI members, representing substantial foreign investors, pushed for equitable treatment for compliant taxpayers who have already made a significant contribution in tax revenue and reinvested $22bn in Pakistan since 2013. Concerns were raised about the undue pressure exerted on existing taxpayers due to unrealistic collection targets.
The OICCI also shared findings from their recent survey, urging the Government of Pakistan to implement measures to stabilize the rupee’s declining value and reduce the overall business costs, aiming to make Pakistan a more attractive destination for foreign direct investment.
Lastly, the Finance Minister and FBR chairman addressed specific concerns brought forth by the OICCI members, which included matters related to high tax rates for corporate entities, outstanding tax refunds for MNCs amounting to Rs93bn, the need for an overhaul of withholding tax rates, and necessary reforms within the FBR. Discussions also included addressing pricing and tax distortions.
The post Finance Minister Promotes Foreign Investment; OICCI Voices Tax Evasion Concerns appeared first on Pakistan Business News.