The government on Thursday constituted ten committees comprising of leading business persons and officials to make suggestions for solving energy crisis, promoting regional trade, protection for IPRs, much needed financial sector reforms and tariff rationalization and addressing various tax related issues in the upcoming budget for the next fiscal year.
Finance Minister Dr. Abdul Hafeez Shaikh chaired a meeting of the Business Persons Council. The meeting reviewed the current state of economy, the role of the private sector and enhancement of economic reforms in the country. The council decided to form 10 committees to give recommendations on their respective areas and to present precise report within two weeks. The first committee including Secretary Economic Affairs Division will work on broadening of tax base. Second committee including Governor State Bank of Pakistan will work on financial sector reforms. Third committee including Deputy Chairmen Planning Commission will work on tariff rationalization. Fourth committee including Secretary Commerce will work on regional trade. Fifth committee including Secretary Industries will work on incentives for investment. Sixth committee including Secretary Finance will work on expenditure management. Seventh committee including Secretary Investment will work on intellectual property rights. Eighth committee including Chairman FBR will work on refund acceleration of taxes and other FBR related issues. The ninth committee also including Chairman FBR will work on tax relief package for FATA and Balochistan. While the tenth committee including Secretary Water and Power, Secretary Petroleum and Deputy Chairmen Planning Commission from will work on energy crisis.
Business persons highlighted their concerns and gave proposals for the coming budget. The discussion circled around reasons for reducing external financing, FBR related issues especially concerns over SRO-191, energy and gas crisis impact on industrial sector, import and export related matters, tariff and interest rate and intellectual property rights issues. On a question regarding increasing debt burden, secretary EAD clarified that debt could never be seen in nominal way. Debt is dealt in the context of GDP. The perception of increasing debt burden was not true, as rather ratio of debt to GDP has decreased. The minister informed the council about the overall economic performance, estimating growth rate of 3.8 percent, which would be highest in last three years despite many challenges. He said difficult decision taken in tax reform enabled to achieve 25 percent increase in tax revenue. Massive funds were distributed among the poor through Benazir Income Support Program. The budget for Balochistan was doubled. Talking about the challenges, he said the government faced inherited a complex energy crisis and reduction in external financing. He said that the country was in transition phase with new public financing arrangements between center and provinces.
The matter of tax refund was also discussed. Finance Minister and Chairman FBR assured business community that their refunds would be given immediately. FBR will energize the process to issue refunding amount at the earliest. A ceremony is expected to be held within three weeks to distribute the refunding checks to the people. The council also concluded to hold an intensive meeting before the announcement of budget, in which delegates from various chambers and associations will participate. President Federation of Pakistan Chamber of Commerce and Industry, Senator Haji Ghulam Ali, member Karachi Chambers of Commerce and Industry Siraj Qasim Taili, member Lahore Chambers of Commerce and Industry Irfan Qaisar Shaikh, member SAARC Chambers of Commerce and Industry Tariq Saeed and other leading business persons participated in the meeting.
