Business News

ISLAMABAD (APP): Minister for Finance, Revenue, Statistics and Economic Affairs Ishaq Dar on Monday expressed resolve to trounce red-tapism for easing out business opportunities and making Pakistan 18th biggest economy in the world by 2050.
“We shall have to remove red-tapism and facilitate business doing. With the removal of this hiccup and ensuring investments pouring in, we can gear Pakistan to below 100th position from present 138th in half of the envisaged time,” he said in an interview with a private news channel.
He also mentioned to a private sector committee constituted to study multiplicity of taxes but their recommendations are still awaited.
“We are moving forward by our own and number of incentives will be introduced to facilitate businessmen and investors. You will soon see the actions in this regard.”
He said some taxes relate to federation and some to provinces and if we all evolve consensus, there is no reason that country reaches its destination of becoming 18th biggest economy within half of the projected period.
The minister hoped to overcome energy crisis by 2018 and as
the law and order situation had improved and Pakistan is becoming
safer destination for investors, it can take more strides. “If we
could achieve those targets within three years for which
international experts had set a five year time, then why we cannot
achieve this target within half of the time.”
Dar said he had also asked the FPPCCI to give proposals for
rationalizing tax regime. “We are ready for out of box solution,
We shall have to devise a mechanism and decide a rationale by
ourselves.”
The minister assured to refund the outstanding sales up to
month of April, till the end of August.
He said PIA has started earning profit but its loans legacy
is thirty years old, therefore the government has asked them to
continue struggle for self-sufficiency. “It will not be wise if
the utility is given another bail-out package but its income is
spent lavishly by its caretakers. We are cognizant of their
situation and are encouraging them to better its working.”
He expressed confidence that province will understand the
new real estate law and benefit from it for more revenue
generation. “We shall engage with provinces on this law as it will
be in their interest if they tow the federal government’s line.”
He said the issue if very clear as it relates to valuation
which was earlier done through DC rate and now we desire them to
disclose the actual value and pay taxes. “It is an industry
estimated around Rs 3000 billion to Rs 7000 billion and we are
cautious about not affecting their business the same time also
bringing them into tax net,”
The minister said under the new initiative if the seller
will get the money, the buyer will also have to disclose his
source of income. “Our aim is to ensure transparency in a friendly
manner. It is a major reform wherein the stakeholders and tax
collection institutions would be clear about the amount of payable
tax.”
He said since last 70 years nobody touched this area and it
had become an easy refuge for black money holders and when it will
come under proper taxing regime, both the federation and provinces
will benefit from it. “We will engage the provinces and I hope
wisdom will prevail.”
Answering a question about 1956 law, he said numerous
commissions under this law were constituted but as the Supreme
Court observed it as a toothless law, we have drafted new law and
sent it to opposition so we can bring in a comprehensive law. “We
may be meeting next week and ensure maximum improvement in this
law.”
On the Panama papers ToR issue, he said, since there is no
chairman or convener of the ToR committee, the government side
members have written to the Speaker to summon its meeting which is
also expected next week. “We had proposed the August 01 date for
it but due to some unavoidable engagements of the opposition
members, it may be held next week.”
When asked that by the time PTI’s agitation had started, the
minister said, it will make no difference. “Today is not of 2013’s
Pakistan. People are more mature now. We need a national resolve
to overcome our problems.”
He asked the PTI to do politics on governance, transparency
and corruption but not on economy. “We are on way to progress and
prosperity. Today international institutions are praising Pakistan
for economic growth and let us not halt it again as we delayed
CPEC for one year through politics of agitations.”
Dar said earlier sit-in cost national economy Rs 100 billion
so maturity should prevail. “PML-N do not need any immunity or
amnesty. We are ready for accountability but it should not be on
roads as it is matter of national interest and economy.”
When asked about sitting with PTI, he said, if Banni Gala
adopts a positive approach, we have no objection in sitting with
them.
He said Pakistan is also working with the Swiss Government
and hopefully during 2017, we shall be able to get information
from them about Pakistanis money in Swiss banks under the multi-
lateral convention of OECD.