ISLAMABAD: The National Assembly was informed on Monday that a comprehensive plan had been made to address the issue of undocumented economy of the country, limited tax base, and reliance on regressive taxation.
Responding to a question during the Question Hour in the House, Minister of State for Finance Ali Pervaiz Malik said the reforms in the tax system was a major priority area of the government and Prime Minister Shehbaz Sharif had approved a transformation plan for the Federal Board of Revenue.
The minister of state said efforts were also being made for the capacity building of the FBR and Customs department. The proceedings of the National Assembly witnessed another day of uproar and protest from the Pakistan Tehreek-e-Insaf (PTI) parliamentarians.
Speaker Sardar Ayaz Sadiq had to adjourn proceedings till Tuesday afternoon after a PTI member mentioned lack of quorum which could not be completed.
Meanwhile, the National Assembly was also informed that during financial year 2024, Pakistani currency appreciated by 2.7 percent against US dollar and closed at Rs278.34 per US dollars. The appreciation was a result of improved balance of payment position as the current account deficit narrowed to US$1.7 billion. In addition, IMF programme and prudent monetary and fiscal policies resulted in a wave of positive sentiments allowing the PKR to appreciate against dollar.
However, during the FY 2022 and 2023, the PKR remained under pressure and witnessed depreciating trend. It depreciated by 28.4 percent from Rs204.85 in 2022 to Rs285.99 in 2023.
The depreciation of rupee was due to weak external account position. Current account balance recorded a deficit of $17.5billion in 2022, primarily on account of surge in imports. Current account deficit declined in 2023 to US$3.3 billion.
To another question, the House was also informed that as per austerity measures approved by the federal cabinet on directives of the prime minister, there would be a complete ban on the purchase of all types of vehicles (except operational vehicles such as ambulances and other medically equipped vehicles, fire fighting vehicles, buses and vans for educational institutions, solid waste vehicles and motorbikes), procurement of machinery, equipment (except those required for hospitals, laboratories,agriculture , mining , schools), creation of new posts including contingent, paid, temporary posts, continuation of contingent paid, temporary posts beyond one year, treatment abroad at government expense and all non-obligatory visits where government money is involved.