Finance minister terms cut in trade deficit positive development

KARACHI: Caretaker Finance Minister Dr. Shamshad Akhtar on Saturday said that the health of the national economy has improved especially the dollar depreciated due to better economic management.

She particularly termed the reduction in the trade deficit a positive development for national economic situation when she talked to members of Federation of Chambers of Commerce and Industry (FPCCI) at Federation House. She said that government would support the small industries and credit would be extended to this sector through National Credit Company, which has been launched.

She called for self-reliance on the economic front and said caretaker government has taken speedy and timely steps towards achievement of this goal.

Dr. Shamshad Akhter agreed with FPCCI’s demand that its representatives should be included in all important and relevant committees of the finance and revenue ministries as the business community is real stakeholder of the economy. She also appreciated active participation of the business community in government’s consultative process with the private sector from the platform of FPCCI.

Earlier, Atif Ikram Sheikh, President FPCCI said that the business community supports restructuring plan of Federal Board of Revenue (FBR) as visualized by Dr. Shamshad Akhtar. The underlining principle of separation of tax policy and collection functions will help resolve contradictions, conflict of interest and maladministration; and, that’s why, FPCCI supports the restructuring proposals, he added. Sheikh stated that the bifurcation of inland revenue and customs will streamline the operations of FBR; and, will not only align it with international best practices, but also remove the concerns of international financial institutions like IMF, World Bank and Asian Development Bank.

This is specifically important in Pakistan’s peculiar case as the country will continue to depend on external financing for the foreseeable future. Atif Ikram Sheikh apprised that it was a longstanding demand of the entire business, industry and trade community of Pakistan to implement complete digitalization and transparency of FBR operations to deal with harassment of the business community at the hands of tax officers and unnecessary issuance of tax notices.

President FPCCI also highlighted the issues of edible oil industry; i.e. Section 8-B of the sales tax act should be abolished and 10 percent differential disfavoring and discouraging the industrialists in comparison to commercial importers should be eliminated. Additionally, in order to facilitate industries, higher tariff should be charged to commercial importers than industries.